Morning Update - 6th April 2012

Morning Traders,

Happy Good Friday to all of you! :)

Alright lets get rolling!

The Dow closed down -15 points or 0.11% to close at 13,060
The S&P500 closed down -1 points or 0.06% to close at 1,398

The Nasdaq closed down +12 points of 0.40% to close at 3,081

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Ok. The US market basically closed near where they were trading since Wednesday. There was not so much reaction to the Unemployment Claims last night but we did regained the losses from the earlier per-market session. And being good Friday, many of the major market would be closed which include the US market. their futures market (Dow, S&P) would be open until 9.15pm our time tonight. The S&P is now still trading at its support level 1391 and is now trading at 1391.25 now, up just 1 point. Take note that there will be Non Farm Employment Change tonight however.

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Whats in store for us:

Ok. Being a Friday, and with so many exchanges closed, I believe that market would be lighter than usual. With the combination of a major economic data being released tonight, I think we are in for a range trading session.

So we are now currently trading near the major lower trend line now with big support below. I think you need to really choose your trades today as things might get really tight! Will we sink and go to oblivion from here? Unlikely. Will we shoot up from here? Chances are it would not be today. The close of yesterday's bar as a doji looking bar confirms this. Both the bears and bulls are still quite equally balanced at this point.

I am in favor of a consolidation type of day. I would be careful not to be caught buying the highs and selling the lows within the range. If there is a breakout, determine first if it is really a breakout with strength and not just a fake out where price breaks and quickly pulls back.

The levels I have identified for today are:

Upper Resistance: 1596, 1601
Lower Resistance: 1585, 1582, 1580

All the best and trade safe.

I will update if there are any significant changes in the market.

Best Wishes,
Tech Trader