Alright lets get rolling!
The US market closed as per the following:
The Dow closed up 89 points or 0.70% to close at 12,805
The S&P500 closed up 10 points or 0.74% to close at 1,369
The Nasdaq closed up 25 points or 0.84% to close at 3,016The S&P500 closed up 10 points or 0.74% to close at 1,369
Okies.. as I mention yesterday after breaking our second level of support at 54, prices rebounded to around 62s level in pre-market trading and maintained pretty much in the 64-70 range throughout cash market in a choppy range. So effectively, we have regained roughly half of what we have lost in the down push recently.. which is not that unusual.. If we bounce up more than half, it probably means that the buyers still have some control over the short term of the market. But regaining about half, I would say that the sellers are still pretty much in control in the near term.
Take note that both tonight and tomorrow night will be numbers day.. economic data will be released in the US and which will have an impact on the stock market. So be careful if you are planning to hold your positions overnight. You can read more about it at our weekend updates by clicking here. So I expect trading to be somewhat choppy like last night and on same on Friday.. sucks huh? yeah I know..
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Whats in store for us?
Alright.. we still have to catch up to the fall on Tuesday night trading.. so I think we will gap down a bit in the morning. I would think that sellers still have the upper hand here. We did break a major trend line and have yet to trade back into the wedge pattern yet.
But with the US market recovering about half of the gains last night, I think we won't be dropping too much as we have some level of support below here. And as I've mention above, due to the market expecting the economic numbers tonight and tomorrow night, I think we will most likely have range trading days ahead until the market has established itself with the new information being released.
So I think there will be market for both of the buyers and sellers.. You just need to pick your spots carefully. If you are planning to buy, make sure that it is near a support that is holding nicely and if you are planning to sell, make sure that it is near a resistance level that is holding nicely. As I suspect we will be having range trading, be careful not to be caught buying the high of the range or selling the low of the range, UNLESS you are trading a breakout. If you are trading a break out, make sure that there are no MAJOR resistance/support blocking your way to your target and there are enough factors to support a strong breakout of the range.
So here are the levels for today:
FKLI
Upper Resistance: 1589, 1591, 1595
Lower Resistance: 1585, 1582, 1578, 1575
Cash Index:
Upper Resistance: 1595, 1600
Lower Resistance: 1591, 1587, 1583, 1578
Ok trade safe all! I will update if there are any important and urgent news again.
Best Wishes,
Tech Trader
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