Price continues to struggle at the 1880 – 85 zone, failing to break above, being rejected yet again. How often can bulls be turned back before they stop trying? Perhaps the “Sell in May…and Go Away” will be their excuse. Earning season is winding down, Fed tapering continues, economic statistics are improving (slowly), geo-political unrest continues…etc. Perhaps the best thing is to make summer vacation plans…time will tell…In the mean time, we continue trading.
Following a spike higher to 1886.00 on the heels of jobs report last week, price failed to sustain a solid bid…Progressive selling continued into Friday’s session, closing in the lower quartile of the day’s range. Momentum has turned negative on an intra-day basis and it will take a resurgence of buying above 1878 – 80 zone to change the dynamics. Do keep in mind the larger picture remains solidly bullish and constructive.
Overnight trade is relative light with price down about five (5) handles from settlement. Initial resistance resides between 1878 – 80…IF this zone can convert, THEN bulls regain their strength to challenge recent highs. Failure to penetrate this zone suggests lack of buying interest with lower levels needed to illicit a buy response.
Initial support zone is 1865 – 68, which should be of interest to the buyers. Failure of a buy response calls for 1859 – 62 zone to be tested…Below this level things can get ugly real fast for longs…
Today’s trade strategy will favor the sell-side on bounces that fail to penetrate the 1878-80 “Bull/Bear Line in Sand”. Cautious bulls on pullbacks to key reference zones.
Remain Focused…ALWAYS USE STOPS!
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.