$SPX Probable Range Result for 2-28-17

Range: 2343.75 - 2406.25

Actual: 2359.00 - 2368.00

Close: 2364.00

Within Range: Yes

Closed in Range: Yes

I had a comment on Twitter yesterday about the range being a little wide...

@tkinder @ForexStopHunter Think that's a little wide. Covering your ass?

— JOHN KELLUM (@jmkellum44) February 28, 2017

People can really be quite warm when expressing their appreciation... 

@tkinder @ForexStopHunter Thanks for your Wisdom, NOT

— JOHN KELLUM (@jmkellum44) February 28, 2017

The probable range isn't spread out wide as a CYA (Cover Your A**) Operation. Instead, the probable range can spread wider when price falls near either the extreme ends of the Murrey Math Levels. This is what occurred with the $SPX as shown below...

8/8 - 2500

7/8 - 2484.375

6/8 - 2468.75

5/8 - 2453.125

4/8 - 2437.5

3/8 - 2421.875

2/8 - 2406.25

1/8 - 2390.625

0/8 - 2375

The $SPX has been straddling the above range and the range below...

8/8 - 2375

7/8 - 2359.375

6/8 - 2343.75

5/8 - 2328.125

4/8 - 2312.50

3/8 - 2296.875

2/8 - 2281.25

1/8 - 2265.625

0/8 - 2250

Certain rules (I'm not going to outline them here) apply as price crosses or trades above or below certain Murrey Math Levels. These rules can cause the probable range to widen. Even if price is trading within a very narrow range the rules applied to Murrey Math Levels still apply.

As of the time this is being written the $SPX is just under 2400.00 and has moved up over 33 points on the day so far. If you are familiar with Murrey Math and Murrey Math Levels this should not be surprising that price would move through the top of one Murrey Math Level - 8/8 or 2375 and move near the 2/8 or 2406.25 level of the next higher range.

In the larger context, 2500 represents the 4/8 level (should present resistance) between 2000 and 3000 on the $SPX...

8/8 - 3000

7/8 - 2875

6/8 - 2750

5/8 - 2625

4/8 - 2500

3/8 - 2375

2/8 - 2250

1/8 - 2125

0/8 - 2000

The probable range is purely rules based. It is designed to the maximum degree possible to eliminate emotions and bias from the equation. The probable range tends to work quite well for what it is designed for - to forecast probable high and low price ranges on a daily basis. The probable range can be used as a tool to evaluate the direction of price and also to indicate levels where potential reversals may occur.

In short, the probable range is designed more to Cover Your A** than to cover my own. Hope you find it useful.