Lets Talk About the Recurring Pattern as we Look Ahead to Tomorrow's Open

I've been mentioning for some time now about this recurring pattern where the markets trade in this range that we have seen for several weeks now (see charts below). The pattern suggests we will Gap up tomorrow and move toward the top of the range ($111.42 give or take). I am in no way saying that markets repeat themselves, because I don't believe they do, but at the same time, I think it is worth mentioning. The way I am going to play it is, if we do Gap up above $110.34, I will go long in morning trading and set a target of around $111.40. Thats about all I have to say for now about trading tomorrow. Have a look at the charts below to refresh your memory about recent market behavior and how the pattern has been respected thus far.

SPY 15 Minute Chart (a)

SPY 15 Minute Chart (b: a closer look)

Looking Back at Today's Play Now that the Day is Done

Had you played the Range as I described in the previous post it would have turned out to be the perfect play on the day.

Assuming you went long at the upper part of the range-bottom ($109.30) and Short at the lower-part of the range-top ($110), you would have made three round trip trades for .70c profit/share per trade.

SPY 5 Minute Chart Showing Trade Range

Trade Size:
100 shares = $210 profit for the day
1000 shares = $2100 profit for the day

That is a solid trading day.
I can't say that I listened to my own advice though as I got caught day trading multiple times within the range and ended up negative for the day...

Today's Play

It is beginning to look like the market won't really break significantly in any one direction today, so I am looking to do some range plays. The range suggests going long between $109 and $109.30 and Shorting between $110 and $110.30. I had a limit to buy at $109.01... SPY moved as low as $109.02, missed it by .1c. Too bad, that would have been a nice take. I did buy half a position at $109.29, so at least I got a little piece of the action. SPY is currently moving up, lets see if we can get past two minor resistance levels that intersect at $109.60. If we can move past that and the 50 Day Moving Average, we'll then just need to get past the 100 day moving average. If that happens we will cross $110 and see the top of the range I mentioned above. FYI, I placed my Stop at $109.21.

If SPY does move back down and moves below $109, I will look to Short.