Potential Double-Top

Yesterday’s auction began in globex on a very weak note, only to trade back to prior resistance (1976) and fail to go any higher…That failure emboldened the bears to press…Later on, reports that a passenger airliner had be shot down by a surface-to-air missile in Ukrainian region sent shockwaves throughout the market sparking a sell-off, taking indexes down to key support (1942- 45) marker.

Price has rebounded approximately 10 handles from lows in overnight and early morning trade to 1956 on 255K volume as of 8:15 am.

Let’s get to today’s hypotheses:

Scenario 1:  Prior Day Low (1949) is marked as “key support” as this represents Cycle Day 1 Low…Any test in pit session will be critical to hold…We will be looking to take long trades on any successful test…Initial retracement resistance is marked between 1958 – 60 zone…We would be interested in establishing short-side trade on failure to exceed this zone.

Scenario 2: Cycle Day 1 Low (1849.00)…Violation and conversion of this level puts longs on the defensive, with potential for liquidation to unfold…Should this develop, lower price targets measure 1936 – 40 zone.

Trade Strategy: We continue to believe that a larger-degree Change-of-Character (COC) continues to develop…Investment Managers will begin to reassess their holdings and future outlook in light of recent and ongoing geo-political unrest. As always, our main trade strategy is to establish positions at Key Decision Point (DP) levels that are in alignment with dominant force…We do not want to “fight the tape”, rather embrace the unfolding of a never ending river of opportunities.

Remain Flexible…Follow the Rules  ALWAYS USE STOPS!

Good Trading…David

Habitude One
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.


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