Lets start off by reviewing the US market.
The Dow closed down -125 points or 0.95% to close at 13,075
The S&P500 closed down -14 points or 1.02% to close at 1,399
The S&P500 closed down -14 points or 1.02% to close at 1,399
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Wow.. what a big pull back. Last night the US reacted negatively to the economic data being released and the S&P contract pullback all the way to support at 1389s. Now we are back trading at 1393.50, which is still somewhere near the lower range of the trade. However, we have some support around this area of 93, 91 (20ema) and 80. As highlighted in our weekly update, the weekly price should not close below 80 or we might be looking at a substantial pullback.
As of now, I am taking this in as a healthy pullback swing.
Whats in store for us:
Looks like we are in for an interesting ride today huh? Alright.. First off, I think I made a mistake in the weekly update by stating that there are no economic data being released today in the US. There is actually Unemployment Claims tonight and a host of other in the UK and Canada. The forecast for the Unemployment Claims is actually slightly positive but it remains to be seen what the actual number is at 8.30pm tonight.
After making a new highs, and closing Tuesday's high as sort of a gravestone doji look of bar, we pulled back a fair bit of the gains and just stop right at the trend line. Now this is definitely not a reversal if some of the anxious bears are waiting for. Not yet anyway. We still have some major support to break through for that.
But as for now, I think we will trade from a choppy range to a slightly downside bias day to test the support.
Here are the levels for today:
April FKLI levels:
Upper Resistance: 1595 and 1603
Lower Support: 1588, 1585, 1580
I will be more incline to be on the sell side today as I prefer to be riding the trend. However, I think we might have already gap down a bit during open and we have to take that into the considerations as well. This hasn't evolved into a full fledged reversal yet so we should trade accordingly.
So, I think there might be some opportunity for buying scalpers to come in too IF the selling is over done. However, if you are thinking to scalp upwards, I suggest that you take your profits quickly before the sellers pile on the bounces.
So identify your ranges, trade the breakouts, and follow the price action.
I will update later if there are any significant movements in the regional markets.
Trade safe!
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FCPO
Guys, I think I will stop posting about the FCPO for a while.. need to watch the market for the FKLI now lah..
The CME are trading near the Upper Resistance and are still trying to break through. If they manage to do that, we may follow too. There are some USDA report today I believe. So watch out for that.
Anything urgent I'll post here again! take care!
Best Wishes,
Tech Trader
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