NARROW RANGE DAY 2 12/20/11

BOT TRADING SYSTEM

YESTERDAY was a narrow range day,  When the range is narrow, we usually see an extended breakout.  It did for the bears.

Last evening the bulls returned and were successful in keeping the Break Out Target (BOT) Ranges unchanged. We have seen this occur previously, and another extended BO day was expected.

Enters B1 a BO of the LONG BOT for a strong run to the BO-5 level )the BO range plus 5 points).  The BO-5 is our standard first target.

1. If PA weakens before BO-5 or at/near BO-5 we tend to see a reversal back to and into the range.  Often it will BO at the opposite range.
2. If BO-5 is strong, target 2 at BO-10 is expected.

Another bullish sign was the open (not tested) 50CBs at B2 and B12, and a strong EMA.  A reversal signal at B45 and possible double topping at the end of the day was the primary bearish attempts to PB PA.