Wow.. I went to bed again at 9pm and woke up at 3 to find that the US market had rebounded quite hard.
Yesterday we expected the market to go back to towards the direction of the 20ema which it did. I hope many of you made some money yesterday.
Last week, we dropped pretty hard in quite a semi-parabolic fashion. I was just listening to some old audio of Tom Sosnoff's market wrap audio this morning and someone mention that the longer the pull back has been delayed, the stronger the pull back is going to be.
So we will see what's going to happen from here.
The S&P futures is currently trading at 1315 and the 20ema is at the 40s level. so if we should go back to test that in the coming days, we might see some bounce in our local market too. After closing below the 20ema in the weekly. the trend should be assumed to be down unless we close above it again. However, at this momont, the 50ema is holding nicely yet. The 20ema in the weekly chart is at the 30s level.
There will be economic report in the coming few days so you need to be aware of that. A good number will send this market up further while a bad one would make the gains yesterday as just a bounce in a down trend.
------
FKLI Daily Chart
----
Caah Index
-------
Alright.. with yesterday's bounce in our local market and the same in US, we might see some relief and price may go back to regain some of the recent losses. We broke down from about the 80s level and reached a low of 17. The midway point would be at about the 55 area. So should we rebound, regaining half of what we lost is a possibility.
We need to follow price action closely and look at cash for our lead. Should cash be performing strongly, you would not want to be short this market unless you are day trading and looking for a quick scalp in which case, you need to take your profits quickly.
So watch your levels and price action closely. As usual, buy at support areas and look to sell only if resistance is holding.
Here are the levels for today:
FKLI
Upper Resistance: 1540, 1546, 1550, 1553, 1558, 1560
Lower Support: 1530, 1524, 1520
Cash Index
Upper Resistance: 1541, 1546, 1550, 1552, 1556, 1560
Lower Support: 1530, 1527, 1524
Trade safe and make some money!
Best Wishes,
Tech Trader
No comments:
Post a Comment