The market yesterday stayed above the support range that was created the day before, which also was within the 38 to 62% correction zone of the last up wave of the previous day. Just before 1400 ET yesterday, the market found support at the 50% correction of the up wave that was created between 1100 ET and 1300 ET.
Looking at the 1 minute chart, the market created a support range at that 50% correction over a 20 minute period. Entering on the upside break of that range we have set up a trade with a 2 point risk with a 12 point potential gain based on market symmetry. Remember that that support range was also created on top of the VWAP Line of the day, which increased the probability of a successful long position.
The market may start to show some resistance as it approaches the upper end of the long term resistance range. Support is currently at the mid-point of that range.
GE reports this morning.
Charles
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