8:58 a.m., EST

The past 48 hours have closed lower for inverse, LABD.

The next four hours may be the key

Using the four-hour chart allows us to break each trading session into two parts (morning, afternoon) as shown above.

Doing this gives us a cleaner picture of what’s happening from a thrust energy perspective.

Thrust energy is a relative number: (Net distance)*(Volume)

The obvious part in the chart, thrust energy is rapidly dissipating as price nears the support area (blue line).

This action could be a secondary test of the spring set-up that has been discussed over the last week or so.

Secondary tests do happen but not that often.

At this juncture in the pre-market, LABD is set to open slightly lower; possibly opening right at the support line.

If time permits, another update will be generated after the morning session (the first four-hours) is complete.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.