Well Traders, the 'support area" has been breached. I mentioned yesterday that it would have either been a safety net, or speed bump and at the beginning, it looked like the former. However, as the day wore on and folks didn't want to be short over the weekend they sold off and dropped the $NDX over $27 points to end at $1,726.03. I am now $75 points to the top of my Bull Put and yes, I am a little nervous. I have some free days over the weekend to burn off some time value and the STO and MACD are getting oversold so there may be a pullback. I also have two more support areas that hopefully will hold out for just a few more days and bring a visit from my friend, Max Profit.
I have marked the 200DMA as my Next Support, and a previous support at $1,684 as my Last Support which is really my last line of defense before the trade goes sour. I also have the Channel Median Line as an ally and hopefully that can slow any further precipitous fall of the $NDX.
Should be an exciting and nerve-wracking 2 weeks! Stay tuned!
Happy Trading!
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