General overview for 11/02/2016:
As we anticipated yesterday, the simple (a) (b) (c) corrective structure evolved into more complex WXYXXZ pattern that had hit the 88.6%Fibo at the level of 126.86. This level is a line in the sand for bulls, and any violation of this level will result in an immediate test of the level of 126.08 and possible count invalidation. Furthermore, the higher time frame consequences of the mentioned level invalidation will result in a strong sell-off that might target even the level of 119.03.
126.08 - Invalidation Level
126.86 - Intraday Support
127.39 - WS3
128.26 - Intraday Resistance
128.76 - WS2
129.34 - WS1
Buy orders from yesterday were closed with small loss when the price hit the SL level. Currently, any buy order on this market should have a SL placed just under the level of 126.86 as any breakout below this level might trigger a strong sell-off. Day traders should use a tight SL or stay aside and watch market behavior around the mentioned levels for any trend-reversal sings.