Morning Update

Overseas Market

The Dow closed down -72 points or 0.54%

The S&P500 closed down -7 points or 0.49%

The Nasdaq closed down -15 points of 0.49%


We had another down day in the US but not by a large amount. Tonight we have one last important piece of economic data which is the Unemployment Claims. This data is closely watched by many traders as it tells the number of individuals who filed for unemployment insurance for the first time during the past week, which will in turn indicated if the country's economy is growing or shrinking. 


Now is this pullback over? For me, the move down the past two days wasn't really strong and the support areas has held pretty well. Only after we have broken through the major support trend lines will I consider a probably trend change. For now, I am taking this as a up swing pullback.


How will this effect us: FKLI

I think we will see another day of profit taking and sellers piling on to take quick profits.

This is the chart of the March FKLI which will expire tomorrow. 

The areas of support would be in the area of 1580 and 1578. If we have any strong spike below those levels with strong volume and strength, then I would want to be more watchful of the following price action.

As for the cash index, we are actually trading at the bottom of the major trend line now. There should be some support at 1580 and 1577. Any spike below that would need to be watch carefully.

For daily scalpers, if you are looking to sell, pick a good spot and sell the bounce. But also at the same time, take the cue from the other regional market to see what it is doing. You do not want to start selling when the other markets are recovering right? 

For long scalpers, you will have to wait for your spots to enter. A good place is to see if price action find sufficient support at near one of the indicated levels. Then look for a cue from the other regional market. I would take quick profit as I think sellers will be waiting to sell the bounce.

Alright trade safe all!

I will update on FCPO before the market opens at 10.30.


Best Regards,
Tech Trader