10.10.13 “Last Chance Retracement”

Mkts were looking into the “abyss” yesterday with sharp sell-off down to 1640 level which was the “last chance retracement” level. If the market did not find support at 1640, then odds increased for a test of August lows. Buyers did in-fact respond that prevented further damage.

Currently the word out of Washington is that both sides are now willing to discuss a short-term deal to fund govt, so overnight trade has price up approximately 14 handles which is equal to Cycle Day 2 average daily range. Jury is out as to whether a compromise deal can be struck, so we will keep on heightened alert with DEFON 3 status.

Key Resistance zone 1660 – 1665…Key initial Support zone 1656 – 58. The 3D CPZ is 1656 – 60 zone so it is important for the market to continue to find a bid on any pullback to the lower edge. Failure to hold 1656 increases odds for retest of recent lows.

Good Trading…David

 

Habitude Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.