This week we have been trading within the value area each day resulting in complete chop. Looking at a daily it’s clear that we are in a period of consolidation. The more we move sideways after a gap the more likely we are to break in the direction of the gap once the consolidation is over. Therefore, we are looking for a resume to the trend and move higher.
Tomorrow’s Employment Situation is the big news at 7:30 CST so be ready for some volatility.
The day’s value area is defined as 70% of where volume took place during that day. Below is a value chart. More on this can be found here.