Labor Day Holiday was quiet with no military action in Middle East…Markets have breathed a sigh of relief rallying in shortened holiday action.
As Money Managers come back from vacation they will be faced with decisions on whether to buy the recent weakness or continue to sell any strength. With unresolved issues in Middle East, they may just be content to tread very carefully in either direction until they have greater clarity.
Key levels to be mindful of are: Prior Day High (PDH) at 1648.50…This will be a “key marker” as it’s approximately 50% retracement of prior cycle swing and is also the 50 day SMA which many traders watch closely. Any penetration of this level and hold would then target initially 1653.25… upwards to 1656 – 58 zone.
Failure to auction above PDH could re-ignite sellers…1639.00 (3D CPZ) becomes initial support level…Violation of this level would force additional selling which would target 1628 – 1630.
As always…stay disciplined by following your trading rules.
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.