Market commentary for 12/17/2008
Good day!
The Federal Reserve has cut interest rates to lowest level on the record. Many expected that we will see 0.5 percent and finally were range from zero to 0.25 percent what is down 1 percent from last meeting in October. Result was expectable and it was strong break up right after announcement.
There is not much words about action before announcement. It was expectable and it was range without much volume and action. Everyone expected 14:15 pm time. On the 60 min charts we can see nice breakout and move up with strong pace and volume in to previous resistance area. We got daily swing setup for third buying wave. First resistance indices reached what we can see on the 60 min charts. Right now that can reflect as double top but with strong pace and volume tendency is that we will see continuation after intraday consolidation. Next resistance is 11/10/2008 high and good target area for now if pace and volume will continue to be strong.
For tomorrow I will look continuation and break above 60 min resistance what we can see in the morning and then we can expect consolidation. Depend on that we can predict future action. Since this is third daily buying wave we must be careful with long side because weekly scenario what I draw last days is still open. All depend again on volume and pace. Both are very important indicators. In case that we will see weak open and if Tuesday action cant sustain then odds for swing break down will increase. In that case market will give us negative signal after FED rate cut help. Conclusion is that much depends on the morning action. Right now is bullish bias with caution. We must keep in the mind that we are still in bear market.
Good day!
The Federal Reserve has cut interest rates to lowest level on the record. Many expected that we will see 0.5 percent and finally were range from zero to 0.25 percent what is down 1 percent from last meeting in October. Result was expectable and it was strong break up right after announcement.
There is not much words about action before announcement. It was expectable and it was range without much volume and action. Everyone expected 14:15 pm time. On the 60 min charts we can see nice breakout and move up with strong pace and volume in to previous resistance area. We got daily swing setup for third buying wave. First resistance indices reached what we can see on the 60 min charts. Right now that can reflect as double top but with strong pace and volume tendency is that we will see continuation after intraday consolidation. Next resistance is 11/10/2008 high and good target area for now if pace and volume will continue to be strong.
For tomorrow I will look continuation and break above 60 min resistance what we can see in the morning and then we can expect consolidation. Depend on that we can predict future action. Since this is third daily buying wave we must be careful with long side because weekly scenario what I draw last days is still open. All depend again on volume and pace. Both are very important indicators. In case that we will see weak open and if Tuesday action cant sustain then odds for swing break down will increase. In that case market will give us negative signal after FED rate cut help. Conclusion is that much depends on the morning action. Right now is bullish bias with caution. We must keep in the mind that we are still in bear market.
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