Market commentary for 12/18/2008
Good day!
After strong pace yesterday before close we saw day with very whippy intraday action. When we look at the daily charts we can say that Wednesday brought consolidation day after Tuesday strong breakup. When we look at the 60 min charts we can say that the SPY made slightly higher high and still need to deal with double top pattern and with odds for more correction tomorrow. On the QQQQ and the SPY 60 min we can see that yesterday resistance area still holding and both lost 10sma support area before close what suggest for more correction. Intraday whippy action (big volatility) is something what increase trading risk right now. I’m not satisfied with market action after yesterday good FED news and strong breakup. Pace and volume didn’t continue and if Thursday will open with selling pressure odds for daily/weekly bear flag will increase. Because of that I think that we are in very touchy moment when indices can back to Wednesday high and continue with daily third buying wave, but also can start with bear flag on the weekly charts. Right now it is impossible to be more specific because intraday whippy action won’t suggest for direction. Since we have triple option Friday all that whippy action can continue in to the end of the week. Right now safest place is with smaller time frames and with scalps and maximum day trades. Everything over night is high risk,
Good day!
After strong pace yesterday before close we saw day with very whippy intraday action. When we look at the daily charts we can say that Wednesday brought consolidation day after Tuesday strong breakup. When we look at the 60 min charts we can say that the SPY made slightly higher high and still need to deal with double top pattern and with odds for more correction tomorrow. On the QQQQ and the SPY 60 min we can see that yesterday resistance area still holding and both lost 10sma support area before close what suggest for more correction. Intraday whippy action (big volatility) is something what increase trading risk right now. I’m not satisfied with market action after yesterday good FED news and strong breakup. Pace and volume didn’t continue and if Thursday will open with selling pressure odds for daily/weekly bear flag will increase. Because of that I think that we are in very touchy moment when indices can back to Wednesday high and continue with daily third buying wave, but also can start with bear flag on the weekly charts. Right now it is impossible to be more specific because intraday whippy action won’t suggest for direction. Since we have triple option Friday all that whippy action can continue in to the end of the week. Right now safest place is with smaller time frames and with scalps and maximum day trades. Everything over night is high risk,
Wish you all good trading!!!
Kind regards.
Ivica
1 comment:
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Keep blogging.
Happy holidays.
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