Market commentary for 12/30/2008
Good day!
Week started with small gap up what was filled right after the open. Usually small gaps are filled right after the open. So that was not surprise. After that selling pressure just continued what we can see on the 60 min charts. The QQQQ was obviously weakest one and reached previous daily support area what was also equal move on the 60 min chart. The SPY was strongest and just back to previous support area, same as the DIA. On that way both fumed 60 min double bottom pattern and that area held until end of the day. Around 20:00 pm ET indices started with correction and if we look at pace on the smaller time frames it was strong enough to suggest that bottom was seen. For tomorrow I expect more selling pressure, maybe not right after the open, but if resistances will hold (especially previous 60 min high for the SPY and the DIA) we can see 60 min 3rd try triangle for break down. Since the DIA and the SPY closed strong that depend on the open. So, if the SPY and the DIA will retest again yesterday low support area then we can expect to see more selling pressure on the daily charts, what will be also weekly bear flag selling continuation. But also if the SPY and the DIA will break above 60 min resistance then odds for selling continuation will decrease and we could see more jumpy intraday action. We also must keep in the mind that we are in the New Year holiday trading week, so we can expect lighter volume then usual. Intraday trading (scalp, day) are still safest places for now, and if you are take any swing trade use smaller risk with proper stop.
Good day!
Week started with small gap up what was filled right after the open. Usually small gaps are filled right after the open. So that was not surprise. After that selling pressure just continued what we can see on the 60 min charts. The QQQQ was obviously weakest one and reached previous daily support area what was also equal move on the 60 min chart. The SPY was strongest and just back to previous support area, same as the DIA. On that way both fumed 60 min double bottom pattern and that area held until end of the day. Around 20:00 pm ET indices started with correction and if we look at pace on the smaller time frames it was strong enough to suggest that bottom was seen. For tomorrow I expect more selling pressure, maybe not right after the open, but if resistances will hold (especially previous 60 min high for the SPY and the DIA) we can see 60 min 3rd try triangle for break down. Since the DIA and the SPY closed strong that depend on the open. So, if the SPY and the DIA will retest again yesterday low support area then we can expect to see more selling pressure on the daily charts, what will be also weekly bear flag selling continuation. But also if the SPY and the DIA will break above 60 min resistance then odds for selling continuation will decrease and we could see more jumpy intraday action. We also must keep in the mind that we are in the New Year holiday trading week, so we can expect lighter volume then usual. Intraday trading (scalp, day) are still safest places for now, and if you are take any swing trade use smaller risk with proper stop.
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