Tuesday 8 May 2012

Morning Updates - 8 May 2012

Morning Traders!

New day, fresh start!

Alright lets get moving. Let us look at how the US market closed yesterday.

The Dow closed down 30 points or -0.23% to close at 13,009
The S&P500 closed unchanged or +0.04% to close at 1,370
The Nasdaq closed up 1points or 0.05% to close at 2,958

S&P: So we closed the premarket gap during cash trading and closed mostly unchanged except for Dow. On the chart, we actually broke the low of the flag/consolidation pattern but because we closed the gap last night, the bar looks like a big green bar with a large upper body and a long tail. The support at 43 was holding nicely and it is possible that we might chop back into the consolidation in this coming week until we have a decisive breakout. The low of yesterday was actually right at the 20ema in the weekly chart. So as long as we are still trading above the 20ema in the weekly, the general trend remains on the upside although we are fast approaching the point where we might break down (or up) in the weeks to come. We will let price action be our guide. 

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Lets us look at our local market today.

(no charts today)

Alright. Cash market was quite strong yesterday which held the futures up nicely too. The Cash Index is trading right at the 20ema now and the Futures is trading just below the 20ema. Is this the point where we are going to drop into oblivion? I do not think that time is here yet. Is this the time to go all out long? Perhaps also not yet.

We are at a deciding point here now. If both the cash and futures can close back above the 20ema in the daily, perhaps we might have a poke and test the highs again especially if the other regional market are doing the same. So we will be following the other major regional and especially US market closely.

There will be no economic data tonight so I do hope that we will have a nice range to trade today. So be on the alert for a possible bigger range to trade today. Buy where support is holding and sell where resistance are holding. Watch your levels closely.

Here are the levels for today:

FKLI

Upper Resistance: 1580, 1582, 1585, 1588\
Lower Support: 1575, 1572, 1570

Cash Index:
Upper Resistance: 1586, 1588, 1591, 1594
Lower Support: 1580, 1577, 1575

Take care and make some money! I will update here again if there are any major news on the wires! Ciao!

Best Wishes,
Tech Trader

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