It appears the markets have decided and a breakout above the March highs is imminent. Of course, something could change between now and the open, but with the London-FTSE already above the March highs this morning, it looks fairly certain that US markets will follow. Expect some acceleration once the Dow gets above 8000. While 4/7 is a turn date, it may be nothing more than a pause, just like 3/17 was. Traders should not hesitate to jump on board this breakout train with appropriate position sizing and risk management.
The 3 week lows on the Dow, SP500 and QQQQ are 7172.02, 749.93 and 28.19, respectively. The 3 ATR(10 day) lows on the Dow, SP500 and QQQQ are 7176.17, 749.19 and 28.37, respectively. (Please verify these numbers for yourself and do your own work.) I would choose stop loss levels below the lower of the above number, which are fairly large spreads, so your position size may be smaller than usual.
Good trading.
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