Market commentary for 01/08/2009
Good day!
After several days up on light volume and yesterday doji we expected correction. I was hope that we will see some light correction but after Wednesday strong gap down and indices impossibility to filled gap doors for more correction during day was open. I sent GS setup during market hour and that was exactly what indices formed during lunch time. After gap down despite of bounce we saw consolidation what we can see on the 60 min charts. Indices formed triangle pattern at lows what increased odds for selling continuation what started around 14:00 pm ET pattern. Indices closed near lows with small bounce before close and on the 60 min charts we can see that all have room for equal move and previous low support area what suggest for more correction next days. Will that be reached at Thursday with gap down or we will see correction first it is something what will see at the open. But odds for more corrections are open and that is direction what I will expect. Wednesday brought trend day and usually after trend day we will see consolidation day so I don0t expect same strong action as yesterday. On the 60 min charts we can see that selling pace is again stronger then buying pace what is not good for bull market what we have on the daily charts. Also we can see that volume on selling days are still bigger then volume on buying days what is prove that we are still in the bear market if we look at weekly charts, For Thursday, after trend day, again will be safest place with intraday setups and smaller time frame trades.
Good day!
After several days up on light volume and yesterday doji we expected correction. I was hope that we will see some light correction but after Wednesday strong gap down and indices impossibility to filled gap doors for more correction during day was open. I sent GS setup during market hour and that was exactly what indices formed during lunch time. After gap down despite of bounce we saw consolidation what we can see on the 60 min charts. Indices formed triangle pattern at lows what increased odds for selling continuation what started around 14:00 pm ET pattern. Indices closed near lows with small bounce before close and on the 60 min charts we can see that all have room for equal move and previous low support area what suggest for more correction next days. Will that be reached at Thursday with gap down or we will see correction first it is something what will see at the open. But odds for more corrections are open and that is direction what I will expect. Wednesday brought trend day and usually after trend day we will see consolidation day so I don0t expect same strong action as yesterday. On the 60 min charts we can see that selling pace is again stronger then buying pace what is not good for bull market what we have on the daily charts. Also we can see that volume on selling days are still bigger then volume on buying days what is prove that we are still in the bear market if we look at weekly charts, For Thursday, after trend day, again will be safest place with intraday setups and smaller time frame trades.
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