Bulls attempted to re-establish dominance yesterday with a strong gap up opening, but could not hold the Open Range. This does not bode well for Longs as “Da Bears” came out of their caves growling. Probabilities favor an retest of 5/23 lows and possible full breakdown if bulls fail to materialize to defend.
Pre-Pit Session has price below Prior Day Low (PDL) which is clearly negative, as well as below 3D CPZ. Momentum has shifted back to bearish and some initial downside targets measure 1633-36 Zone for a pivot retest. Failure to hold this zone would cause long liquidation which could get ugly down to 1619, then 1612’s.
The bullish case calls for holding any selling and reversing up through 1655. The current 3-Day Cycle continues to favor bulls, but unless they can stage a strong reversal, the “change of character” (COC) we discussed last week will gain momentum.
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.