Overall context is a broad consolidation, with volatility contraction visible on intraday charts as a triangle.
Within this area (and expect wide, “messy” definitions of the confines of the pattern—not precise levels), expect failures and sharp spikes that are quickly reversed.
Do not fade a breakout from this area, either up or down. Intraday, a break would probably look like a sharp thrust (perhaps on the open) that is able to consolidate without a significant pullback. This action likely sets up additional trend legs in the direction of that break.
Longer-term direction points up, but be prepared to trade against this bias if dictated by the market.
Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.