Posted 9:23 am PST.
Yesterday had a 3.5 point range, making it one of the smallest days of the past few years. It formed a sell signal on the daily chart for a final flag trend reversal. Like most trend reversals, the risk is small, but this means that the probability is small as well. The market is still just below the top of the channel on the weekly chart, which is a magnet.
Today is a trading range day so far. The market reversed up again from below yesterday’s low, but with very two-sided trading. This is a nine bar bull microchannel so there are probably buyers below, but there is no strong breakout in either direction and the probability of a swing trade up or down is therefore low. Traders are buying low, selling high, and scalping while they wait for a breakout in either direction.