Well Traders, a very interesting Friday on the $NDX. The index actually broke my diagonal support line intraday, before a furious rally in the last 90 minutes to close just at the diagonal support line. The $NDX actually hit about $1761, which is the top of my "support area" shaed in gray.What does it all mean?
Well, this could be the start of a softening of the $NDX, though I would have liked to have seen the index remain below the diagonal support line at the close for more conviction. Still, there is the "support area" to contend with. As long as the $NDX remains above this area, there is still the possibility of a run-up.
At this time my trade is just about even, after the roll-out. This weekend helped to cut out some time value, and another down day on Monday will help greatly. My Bull Put spread is getting nearly worthless, whihc means I have just about maximized the profits on the bottom.
A continuation of a downtrend through the "support area" would be ideal, as it will enable me to set up my January trade in a few weeks.
On a down note, my beloved Alma Mater, USC lost an improbable game 13-9 to upset-minded and cross-town rival, UCLA, whose defense played an inspired game, snapping the Trojans' NCAA-record of scoring 20 points a game at 63. Congrats to the Bruins!
Happy Trading!
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