Morning Updates - 17 April 2012

Morning Traders,

Lets get rolling!

First as usual, we will look at how the US market closed.

The Dow closed up 72 points or 0.56% to close at 12,921
The S&P500 closed down -1 points or -0.05% to close at 1,370

The Nasdaq closed down -23 points or -0.76% to close at 2,988
Alright, the S&P last night did not break down from the latest mini trend line at about 1360 and basically closed unchanged or down 1 point and the Nasdaq closed down 23 points. The Dow however closed up 72 points.

So we actually have a divergence here in the major indices. Some stocks are showing upside strength, some neutral and the tech stocks are slightly downside biased for yesterday. But we will be basing our strategy on the S&P contracts.

So basically on the weekly chart, Monday's price action represent just a small bar at the moment which is to say, price have not yet moved out far from where it closed last week. Where this breaks out remains to be seen this week. So lets move on to the next section.

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FKLI

Here is the daily chart for the FKLI.

We have been trading at this upper range of our FKLI of between 1580 and 1600s for almost a month plus now. Even when the US market has had a pull back, we are basically still here, breaking the trend line by a bit, but still holding up pretty much.

Today looks like we are still going to be trading within the upper range again. Basically, we are not going anywhere and are just chopping around in this 1580-1600s range.

So, look for today to be pretty much the same as it has been for the past month or so. Pick your spots carefully. Sell from where resistance is holding nicely and buy at where support is holding as well. I still believe support.

We have building permit report tonight so I expect a slightly range trading to a slightly upside biased for today.

Here are the levels for today's price action:

FKLI:

Upper resistance: 1601, 1604, 1606
Lower support: 1597, 1590, 1585


KLCI Index:

Upper resistance: 1600, 1602, 1605
Lower resistance: 1594, 1592

Trade safe and I'll update here if there are any significant news that comes along. By the way for FCPO traders, price action of the CME grains seems to be coming down after failure to overcome the upper resistance. Trade safe.


Best Wishes,
Tech Trader