02 Oct Wednesday View

After a dramatic fall on prices after failing to penetrate 38.2 % fib at 32221 (USD 1336.32) to 30803 this morning, the price is right at another important level 23.6 % fib at 30785 (USD 1276.77). This level is important in the meaning that a correction of the fall from 38302 (USD 1588.52) was initiated from here on 07 Aug to test back a high of 34544 (USD 1432.67) which amazingly happened to be 61.8 % fib which reversed the price to the level we are at today. If this level fails, we may see a test of 28463 (USD 1180.46) back again but that will have to be supported by fundamentals on U.S. Debt Ceiling in mid October. If investors shrug off the fear as they did yesterday on government shutdown and better economic data kept coming out supporting Fed to scale back the stimulus program a test of mentioned level and even further beyond can not be denied.

Prices are in fragile levels from both the fundamental and technical views. But at this time long as price trades below 31345 (USD 1300) level, technically the outlook is Bearish.

Trade Safe :)