Wednesday 23 May 2012

Morning Updates - 23th May 2012

Morning Traders,

How is everyone doing? I hope everyone got rested and ready for the day.

Alright.. After the existing home sales data last night, market reacted positively and bounced up but gave away most of the gains late into trading before closing flat for the day.

From what I can see, sellers are pretty much still in the market and should not be written off yet. However, the ball is in the buyer's court now to see if they will defend these levels because if they do not and we give back the gains of Monday, we are going to look at another down leg after that.

As of now, we basically closed as a doji in the S&P futures so buyers and sellers are pretty balanced. We will wait and see which sides will win and break through the doji extreme in the next few days.

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FKLI

Alright. We closed a 11 points discount to our Cash market. The cash index was matched up in the end and we closed at a new high for the day but futures continued to fall off the floor.

I would want to still follow what the Cash index is doing today. If the cash market is going up, futures can't diverge too far. I'm in favour of price going back to test the 20ema area in the coming days assuming there are no changes and no additional bad news on the horizon.

Trade your levels carefully.

Here are the levels for today.

FKLI

Upper Resistance: 1540, 1544, 1547, 1550
Lower Support: 1535, 1531, 1527, 1525

Cash Index

Upper Resistance: 1550, 1553, 1556, 1560
Lower Support: 1541, 1537, 1534, 1530, 1527

Trade safe all!

Best Wishes,
Tech Trader

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