Market commentary for 12/31/2008
Good day!
Obviously odds for weekly bear flag decreased with Tuesday action. After gap up indices continued with buying pressure and broke previous 60 min high what canceled possible 60 min move-rest-move (continuation) action. Unfortunately this is still not swing long signal, it is just signal that we wont see 60 min selling continuation after few consolidation days at low. Morning buying pressure (pace) was very strong what we can see on the 60 min chart. All reached previous high and resistance area and stared with consolidation. Volume was higher then last two days, but still under average and I still think that we have day trade market without sure swing direction. Last 15 min the SPY and the DIA broke from consolidation area and reached next high while the QQQQ closed at morning high. Pre holiday and after holiday action are usually good for day trading because I think that we will see truly direction next Monday when all will back from holidays. On the daily charts we can see that the DIA and the SPY closed under 50sma and the QQQQ under 10sma. Since indices closed at highs, charts suggest for long continuation in the morning and the DIA/SPY have room for another push what we can see on the 60 min charts. But also we must know that we are entering last day in the year what will bring again small volume. After morning action I will expect to see that volume will decrease and odds for correction after move up and profit taking will increase.
I will again use this column to wish you all best luck and profitable 2009 year. Hope all wishes will come true.
Good day!
Obviously odds for weekly bear flag decreased with Tuesday action. After gap up indices continued with buying pressure and broke previous 60 min high what canceled possible 60 min move-rest-move (continuation) action. Unfortunately this is still not swing long signal, it is just signal that we wont see 60 min selling continuation after few consolidation days at low. Morning buying pressure (pace) was very strong what we can see on the 60 min chart. All reached previous high and resistance area and stared with consolidation. Volume was higher then last two days, but still under average and I still think that we have day trade market without sure swing direction. Last 15 min the SPY and the DIA broke from consolidation area and reached next high while the QQQQ closed at morning high. Pre holiday and after holiday action are usually good for day trading because I think that we will see truly direction next Monday when all will back from holidays. On the daily charts we can see that the DIA and the SPY closed under 50sma and the QQQQ under 10sma. Since indices closed at highs, charts suggest for long continuation in the morning and the DIA/SPY have room for another push what we can see on the 60 min charts. But also we must know that we are entering last day in the year what will bring again small volume. After morning action I will expect to see that volume will decrease and odds for correction after move up and profit taking will increase.
I will again use this column to wish you all best luck and profitable 2009 year. Hope all wishes will come true.
