As we know market temporarily topped out at 1407 last Tuesday, August 7th. In my earlier post on market I have mentioned the importance of August 8th date.
Since then market has been trading in a narrow range. The longer the market trades in a narrow range – sideways action – the bigger is the move. The move has the higher probability to the upside which was the previous trend before sideways move.
Today CSCO beat earnings:
This could be the catalyst tomorrow in moving the market to the upside and thus breaking the one-week narrow range action.
I hope the above insight into the market helps you in putting on the profitable trades one after the other.