I can only tell you exactly what is going to happen – the rest is up to you!
On Monday, this is the range we drew for the S&P and, as I said in the Morning Report:
It's like we've simply zoomed in on the exact same chart but that "zoom" means we've cut 1.67% off the range and now the S&P is stuck in a 3% range, between roughly 2,600 and 2,700 and, if we zoom out a bit more, we see that tightening range is wedged right between the 200-day moving average at 2,611 and the 50-day moving average at 2,688 and the narrower this range gets, the more those averages squeeze together leading to a very exciting resolution at some point.
Remember, the 5% Rule™ is not TA, it's just math but we illustrate the math on charts – that's all they are good for, really. Charts tell you where you've been, not where you're going and, if you want to stay ahead of the market, you should use the 5% Rule™ – because it tells you which way the markets are heading. In January the 5% Rule™ told us the markets were wrong and the rally was overdone. That's why our Short-Term Portfolio is up 85% for the year – because we made the right bet at the right time.
On Monday morning, the chart predicted by our 5% Rule looked like this:
As you can see above, it turns out we had a perfect short on at 2,684 on /ES and then we fell right to the Weak Retrace line at 2,596, which was an 88-point drop and the S&P Futures (/ES) pay $50 per point, per contract so the gain from that play was $4,400 on the way down and then flipping positive at the bottom of the range paid another $1,500 per contract at 2,626 and now we'll see if this morning's Non-Farm Payroll Report can push us back to the higher end of the range.