October 10

Discord access link: https://discord.gg/UPbu6PZFDp

We can now say that we have a “5-Day Balance” mostly between the 6758 BZ level and the 6800 psychological level. Today’s profile is a “b shaped” profile which usually means that today’s selling was due to “long liquidation” and not new selling. Liquidation breaks are supposed to strengthen the market since the “lower” prices should attract new buyers.

• So far the biggest piece of Market Generated Information that we have received this week is that there is still zero buying interest above the 6800 psychological level. Once we see acceleration above 6800 it would also mean a breakout above this “5-Day Balance”.

• Tuesday’s low 6747.25 is poor, if we were to trade below it tomorrow we will see the breakout attempt below the “5-Day Balance”. If we see a look below it next week it will mean the end of Weekly One Time Framing Higher.

• In theory we should continue to monitor for potential continuation of this balancing action between 6758 and 6800 but we also need to be prepared for the breakout.

Bullish Scenarios:

• Longs above 6787 or above 6800 targeting 6817.

Bearish Scenarios:

• Shorts below 6787 targeting 6758.

• Shorts below 6758 targeting 6729 followed by 6700.