Back At Support

Last evening’s weakness in equities continued overnight and we are now finding ourselves back at the diagonal support line that has provided an entry base for the past month. Although well established it doesn’t mean that support is chiseled in stone here, which is why I am considering a binary setup. Here’s how we play it:

I just grabbed a long position as there is a small chance that the lower 100-hour BB is going to hold up. My stop is a bit close but 2036 is the inflection point right now courtesy of that spike low we produced a few hours ago. Momentum at this point is slowing down and we’ll have to see what happens in the first hour of the session. Clearly the Zero should provide us with some much needed context.

If stopped out I’m prepared to grab a short position with a stop at 2047.75. I’m playing small position sizes as there’s not a lot of context except for the daily Net-Line Sell Level which not so coincidentally sits at 2047.25.

Cable is falling hard today which is awesome as I was about to buy some replacement arms for my Aeron chair in Britain – and those suckers are expensive. On the trading side I’m waiting for a touch of 1.41 (not 1.412 as it says in the chart) after which I’ll be long with my ISL near 1.397.

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