Market commentary for 11/18/2008
Good day!
Bad economic news continued as Japan officially is in a recession. Markets all over the world were weak and the US market was no exception. Monday started with morning weakness and after all the bad news that was not a surprise. Around 11:00am ET reversal the indices started a correction and actually had a strong start on the 5/15 min charts. Unfortunately it didn’t hold long enough for a stronger directional change. Consolidation after bounce was very choppy. Since the initial move after Friday's high is down, what we see on the 60 min charts I am biased to stay on the short side. The last 15 min the indices broke down from the afternoon range and closed at the lows.
If we look at the daily charts really nothing has changed. The indices 3rd try is still open and until indices stay under the 10/20sma resistance area it will be valid. In Monday explanation I brought the weekly/monthly charts and from that aspect everything stayed the same.
My focus for Tuesday will stay with smaller time frames because the risk is high and until we see “healthy” intraday action it will increase. Bias still is staying on the short side, but remember this is news market. Maybe some government decision can bring some more optimism, but for now all economic numbers are saying the market has a reason to go down.
Good day!
Bad economic news continued as Japan officially is in a recession. Markets all over the world were weak and the US market was no exception. Monday started with morning weakness and after all the bad news that was not a surprise. Around 11:00am ET reversal the indices started a correction and actually had a strong start on the 5/15 min charts. Unfortunately it didn’t hold long enough for a stronger directional change. Consolidation after bounce was very choppy. Since the initial move after Friday's high is down, what we see on the 60 min charts I am biased to stay on the short side. The last 15 min the indices broke down from the afternoon range and closed at the lows.
If we look at the daily charts really nothing has changed. The indices 3rd try is still open and until indices stay under the 10/20sma resistance area it will be valid. In Monday explanation I brought the weekly/monthly charts and from that aspect everything stayed the same.
My focus for Tuesday will stay with smaller time frames because the risk is high and until we see “healthy” intraday action it will increase. Bias still is staying on the short side, but remember this is news market. Maybe some government decision can bring some more optimism, but for now all economic numbers are saying the market has a reason to go down.
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