Markets remain optimistic that a deal will be agreed upon, but still a bit edgy. Markets opened lower yesterday as expectations of a weekend deal fell apart, only to rally back to notch new highs as word spread that Senate was close to agreement. Whatever compromise is reached verdict is still out as to House of Rep. acceptance.
With early low established yesterday at 1680.75 and price closing on highs, clearly bullish sentiment is intact….As such, pullbacks should be considered buying opportunities at key retracement zones. Central Pivot Zone (CPZ) today is again fairly wide between 1694 – 98 so anticipate a buy response should this zone be tested. The Three-Day CPZ (3D CPZ) is 1686 – 91 which should provide stronger support on pullbacks.
Penetration of PDH (1706.00) and hold targets 1711 – 15 zone. In the event of negative news and a total breakdown below PDL, then 1676 and 1670 become lower objectives.
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.