As Washington continues to dig their heals in deeper and the shutdown continues with the debt-ceiling issue looming, Markets have become even more edgy sending the VIX index to above 20…not seen since last June. We will now raise the investor alert to “DefCon 3”.
Sharp sell-off late in session pushed price down to anticipated lower targets we posted in yesterday’s blog. Overnight trade produced a small relief bounce settling in at this posting between 1654 – 58 zone. Uncertainty and uneasiness on traders/investors minds will keep price action choppy with a downward bias until there is more clarity about the budget and debt ceiling resolution.
Initial resistance is 1658, with greater resistance at yesterday’s break-point 1663 – 66 zone. Initial support (marginally) will be prior day low (1648.25) Violation of this level and further long liquidation could drive prices deep into 1638 – 40 zone…OH MY!
Stay Nimble…Stay Calm…Use Stops…Take Profits Relentlessly!
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