Market commentary for 12/16/2008
Good day!
Week started with selling pressure. Indices lost almost all Friday gain after gap down in the morning. Selling pressure stopped at 15:30 pm ET (last reversal period) with nice 5 min CCI setup and strong bounce after setup. If we look at daily charts we won’t see any changes. Indices stayed in daily consolidation area. We didn’t saw strong bounce what will be prove for third buying wave, but also indices didn’t broke down. Nothing changed from weekend commentary.
This is just prove that everyone wait FED meeting at Tuesday. Whole Monday action was just preparing for FED decision and I will expect buying continuation in to FED decision. We don’t know what will be after even everyone expect rate cut, and I will stay with old activity after announcement. Usually first initial move after announcement will be final direction with counter move between them. Example: up-down-up, or down-up-down. I will watch for that action on the 5/15 min time frame charts. Remember that is generally action, not the rule. Lately I noted that truly direction we will see day after FED so patience will be again very important.
Also usually we will see pre FED buying and I will watch for intraday setups and they need to be closed before announcement.
Good day!
Week started with selling pressure. Indices lost almost all Friday gain after gap down in the morning. Selling pressure stopped at 15:30 pm ET (last reversal period) with nice 5 min CCI setup and strong bounce after setup. If we look at daily charts we won’t see any changes. Indices stayed in daily consolidation area. We didn’t saw strong bounce what will be prove for third buying wave, but also indices didn’t broke down. Nothing changed from weekend commentary.
This is just prove that everyone wait FED meeting at Tuesday. Whole Monday action was just preparing for FED decision and I will expect buying continuation in to FED decision. We don’t know what will be after even everyone expect rate cut, and I will stay with old activity after announcement. Usually first initial move after announcement will be final direction with counter move between them. Example: up-down-up, or down-up-down. I will watch for that action on the 5/15 min time frame charts. Remember that is generally action, not the rule. Lately I noted that truly direction we will see day after FED so patience will be again very important.
Also usually we will see pre FED buying and I will watch for intraday setups and they need to be closed before announcement.
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