Bye July

Just a lazy last day of the month 9 o'clock inventory reversal lower. No biggie.

Transitional TICK showed the pattern nicely.

See you next month.

First day of the month trade is pretty crowded, so I'm just going to see what unfolds without any biases.

Minor Low Grind

Pays to keep your bullish hat on when those prior day minor lows strike!

Fed Day Grinder Higher

Just like we envisioned.

Trend Day Higher

Gee whiz, Scott trader.

Sure enough, our analysis was dead on.

Once the buying started to gain traction today, you had to get on board and ride your trade for some short covering Nirvana.

Our bias for tomorrow is consolidation with an upside bias. Days like this typically won't just fail back into the range and the grind could most likely be on.

Chop Near Lows

Choppy balance unable to build upon Friday's trend move lower.

With price extended lower, this is an area that could trigger a swing higher.

Watch out for lack of follow through tomorrow.

Trend Day Lower

The price action confirmed our bias from yesterday and a good old-fashioned trend a lower printed with a mechanical 12 o'clock reversal into the close.

These perfectly mechanical late session short covering rallies are always a flag. If not tomorrow, I would expect some sort of by response soon in the zone.

That, or the market has changed and the implosion continues. But that's low odds bet for now.

Little Breakdown

Morning balance broke out lower from yesterday's consolidation area and printed a decent move lower.  A transitional structure reversal was sold for another push to fresh lows.  This minor low was bought just after 12:00 for some short covering into the close.

Decent trading action.

Tomorrow's bias is lower.

Mind numbing Wednesday folks.

Tight balance, no trades.

Probably favors upside break.

Selling

Not surprising that a little bit of selling came in today at such a key reference level.

But the selling was of a very poor and will confidence variety.

Minor selling on the Apple earnings after hours.

Healthy Consolidation Day

Textbook grinder action.

Price and the initial balance could not even test below the A period lows into the gap and it was mind numbing grind higher for the rest of the session.

With price now just below all-time highs it is ultrahigh odds that this level will be tested.

A failure of this area could set up a nice short trade as it would not surprise me if they explore back into the range. Market is pretty overbought here.

But odds are that it probably keeps going. It is earnings season and Google just reported a nice number.

Afternoon Dump

11:00 inventory dumps in grinders are almost always bullish for upside continuation the following day.

Will this pattern play out again?

Bull Market Grinder

A textbook market grinder type of day.

It's going up folks.

Greece Gap

The Greece news produced yet another almost 20 point gap and the intraday action did not even attempt to fill the gap.

And this type of structure has meant recently is that they are going to close it on highs. That's what happened today.

This market is going up and I highly suspect that it could just start grinding higher from here.

Another 30 Point Gap

Wow, yet another huge gap to above yesterday's range highs. We were correct in our assessment yesterday.

The pattern of selling back into the gap was on early going, but failed just before 8 o'clock and the day structure morphed into your textbook bull market checkmark pattern.

Barring any sort of negative news, the path of least resistance continues to be higher.

But hey, the trend is for 30 point gap down come Monday!

Gap Gap!

Yesterday's assessment was absolutely correct.

Low confidence price action lower definitely did trigger a response higher. But when regular session open price was just at the minor high of yesterday's range highs. Thus, it was not surprising to see the two-way auction process unfold with a trend they back down into the range.

But it was a low confidence sell day, and this up downmarket is probably primed once again to push price back up into the range. As I write this price is already spiking 17 handles higher.

So with that we let the news unfold and feel that the path of least resistance is higher.

Approaching some key ranges in the VIX.

Shut Down Day

Fine that the excess tails failed.  We were aware of that in this pure-news environment.  Technical stuff of limited merit.

It was obvious from the get go to not even bother to fight long.

And then the NYSE shut down, probably as a result of the Chinese markets imploding, just made it a hands off type of day.

Nice 9:00 low reversal trade back to VWAP and a nice VWAP transitional structure short at 11:00.  Even in a market shut down, the 9:00 and 11:00 zones were in play

But with the NYSE and TICK out of commisison, it was one wierd session we just watched.

Grind lower down low confidence and prone to reversal.

How can it not response up tomorrow?

Vix way up:

Metals and a stock or two are very good examples of how markets really work when buyers froth to the upside.  Ultimate pain and ensue -- for years.  

Today's action: 

Patterns Do Repeat!

Shocker!  Yet another very nice morning trend from the open!

Today's reversal pattern was a transitional structure print at S2 just before 9:00.

And then is was short covering from there: over 40 handles in all.

Yet, not sure why the VIX topped out and ground lower today with the indexes exploding in volatility.

Tail!

After days and days of sellers failing, today prints the motherload of an excess tail as a failed once again.  This environment is full of news, but the path of least resistance appears to be higher.

This market is moving with volatility up.

Going with the morning trend has been the trade of the day now for many days in a row.

And range extremes have been providing powerful rotational opportunities.