Lets get started.
Let us first look at how the US market closed yesterday.
The Dow closed up 194 points or 1.50% to close at 13,116
The S&P500 closed up 21 points or 1.55% to close at 1,391
The Nasdaq closed up 54 points or 1.82% to close at 3,043The S&P500 closed up 21 points or 1.55% to close at 1,391
Wow! What a strong performance for in the US market yesterday!
The S&P's contract support at 60 held nicely and we went up to touch as high as 88.75 and we are now trading near the upper range of 85.50 up 2 points as of this typing at 8.10am.
The market responded positively to the economic numbers last night and was helped with the improved sentiments in Europe too. As price action traders, when sellers were not able to take effective control of the market as was shown as the support levels holding nicely, the bulls will always come back to try to wrestle back the control of the market.
But we have yet to trade into the lower trend line of the upward channels at about 92-93 level. So it remains to be seen if we will have enough energy to break back into the pattern.
Alright lets look at our FKLI next.
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The last two closing have been strong right into the 98 level for our FKLI this week. We will definitely gap up in the morning, but the question is by how much. I expect this 98 level to be a strong support after we have gap up so we will see how we can trade that if we reach this level.
The big gap up last Friday is still quite fresh in my mind as we gaped up 10 points and then trade the day down to fill the gap, so just be careful if we did gap up huge again today.
I am more inclined to be on the long side but depending on where we open, I will trade based on the support and resistance levels for today. Take note that there won't be any economic reports tonight so I think we should have a nice range to trade today.
If you are planning to buy, do it at where prices are holding nicely and if you are looking at selling, then it should be done where price have difficulty to break through with a small stop just above the highs in case you are wrong.
Here are the levels for today:
FKLI:
Upper Resistance: 1601, 1604, 1606, 1611
Lower Support: 1598, 1595, 1592,
Cash Index:
Upper Resistance: 1600, 1602, 1605, 1609
Lower Support: 1596, 1594, 1592
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All the best and trade safe! I will update here if there are any major news across the wires.
Ciao!
Best Wishes,
Tech Trader
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