Congress voted an 11th Hour Budget and Debt-Limit increase deal ending the stand-off….Until the next time…continuing saga….(DEFCON 5)
Back to the trading business….
Prior Day High at 1717.00 will be necessary to overcome for higher prices…Sellers filled every buyer into that level yesterday…Anticipate additional supply if retested. The daily Central Pivot (1707.00) is overnight support…IF violated, THEN lower levels to consider 1704 – 05…Below that is 3D CPZ 1700 – 1703 which should provide ample responsive buyers if tested.
Bullish structure remains intact, so continued trade strategy is to buy pullbacks to key price zones…If price retests recent highs and fails to penetrate, then aggressive shorts can be taken against failed levels.
As always remain disciplined…
I take the long term view. I am willing to lose in the short term. I understand that losses are a necessary cost of doing business, like inventory to a merchant. Drawdowns are viewed as temporary. I realize that my wins and winning periods are part of the broad process. Each trade is but one in a string of trades. What is happening now is one piece of a much larger puzzle. Because of this I do not get overly euphoric or despondent.