Markets in Development Briefing for April 13, 2018

The Stock Indices simply cannot generate enough strength to trade through and breakout of resistance areas outlined in the Briefing. Therefore, the higher probability is for rotation down to test, and possibly take out, current support levels. While a news event could change the current structure and probability assessment, unless or until that happens, use caution on all long positions.

Today’s trading was a good example. If you had bought the early breakout above resistance and not looked at the internals, you would have experienced a nice loss, as the rotation down was significant. Use caution on all long positions at this point, and lean toward the short side of the market. That analysis will only change if there is a price breakout above resistance and the internal components support the move.

DAILY BRIEFING 180413 from Joe Mertes on Vimeo.