Lets get cracking!
The US market closed as follows:
The Dow closed up 89 points or 0.69% to close at 13,091
The S&P500 closed up 19 points or 1.36% to close at 1,391
The Nasdaq closed up -68 points or 2.30% to close at 3,030The S&P500 closed up 19 points or 1.36% to close at 1,391
Alright.. in line with good earnings has pushed the market in the US up since premarket yesterday afternoon. The FOMC meeting was also in line with trader's expectation. The S&P closed up quite strongly. We are now trading at 1387 as of this writing at 8.09am down 0.25 points and prices are still hovering at the top of last night range. However, do take note that we are still trading within the consolidation/flag pattern on the daily and the weekly chart between the range of 88-60s. There was no break out last night yet.. perhaps tonight? or perhaps not? We will see. We have unemployment claims and pending home sales number tonight which might move the market. So if a good number comes out including more positive earnings and news may just give the market an extra breath to break up. If not, then look for us to chop all the way back to the low of the flag again in the coming days. We will let price action be our guide.
Lets move on to our local market.
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FKLI
Whats in store for us? Interesting chart to be honest. With the US market closing up, I would think that we would gap up even if its just a small gap. If so, then we will break the minor trend line above the previous 6 day's price action already. Which is a good small bounce back to test the 20ema.
It remains to be seen how committed the buyers are in this current market situation but we have now closed below the 20ema quite convincingly in the Daily chart. I think a test back to the 20ema is quite reasonable. Usually when price pulls too far away from the 20ema, it will attempt to fade back to test it before continuing the down move or breaking up and closing above the 20ema to resume the uptrend. Honestly, I am more in favor of first choice. But no matter what, we will let price action be our guide.
If you are looking to buy, do it at where support is holding and if looking to sell, make sure it is where at resistance are holding. Today is likely to be range trading day with the numbers coming up tonight. So don't be caught buying the top of the range and selling the bottom of the range UNLESS you are trading a break out. If you are trading the breakout, look to see if where is enough strength in the market to carry price to reach your target.
Today's trading levels are:
FKLI
Upper Resistance: 1580, 1583, 1585. 1588
Lower Support: 1578, 1575, 1572, 1569
Cash Index:
Upper Resistance: 1583, 1587, 1585
Lower Support: 1580, 1576, 1574, 1571
On a side note, it would be interesting to know that the spike down on Tuesday just stop smack right on top of the 20ema in the weekly chart of the FKLI.
I will post the chart later in the evening.
Trade safe all! Make some dough!
Best Wishes,
Tech Trader
p/s: be back to change the typos later.. market opening soon.. ciao!
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