“Da Bears” made another attack yesterday pushing ES down to 1640, which is a critical “line-in-sand” for Bulls. Intra-day retest of that level resulted in a higher low as there were no new sellers, thus trapping shorts, forcing a short-cover rally to prior morning highs. Overnight action again retested 1640 – 42 zone successfully. In early morning trade bulls are staging a rally up to critical 1655 level, which could be the tipping point for shortie.
Today is day 3 of Cycle which is normally bullish. Having held critical zone (1640), bulls have good odds of completing yet another bullish cycle by pushing price above 1655 and holding.
IF price can penetrate above 1653, THEN price projects upwards to 1660 – 65. A violation of 1638 – 40 zone calls into question bulls resolve and tips balance back to bear-case. Anticipate increased variances in opinion which could provide decent volatile trading opportunities.
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.