Market commentary for 01/09/2009
Good day!
Thursday stared with gap down, but gap was not strong and it was expectable that it will be filled in the morning. On the 60 min charts we can see that the DIA was weakest, while the QQQQ was strongest and after morning consolidation at lows we saw nice bounce before close what suggest that Thursday low will hold for now (daily 10sma – brown line). The QQQQ closed near Wednesday gap resistance area and if at Friday will try to break it right after the open, it will be first try, and usually first try won’t work. On the other side the DIA barely closed above daily 10sma. All day was stuck in the middle of daily 10 and 20sma. Look weakest on the daily chart, but also at strong support area and closed at highs. The SPY was in the middle and bounced of daily 10sma with solid volume and closed at highs.
Thursday action suggest that low will hold, but also it will be hard to back at Tuesday high. Several resistances before that and I will expect another day trading day. If wont be changes at the open, I will follow the QQQQ for strength and the DIA for weakness. Wednesday selling pace was strong and we wont see daily flag or base, now is time to see can we see daily triangle for possible up continuation or we will see daily avalanche for swing short setup. Until that dilemma won’t be clearer safest place will be with intraday setups. I don’t have clear bias for Friday so I will wait market open for it.
Good day!
Thursday stared with gap down, but gap was not strong and it was expectable that it will be filled in the morning. On the 60 min charts we can see that the DIA was weakest, while the QQQQ was strongest and after morning consolidation at lows we saw nice bounce before close what suggest that Thursday low will hold for now (daily 10sma – brown line). The QQQQ closed near Wednesday gap resistance area and if at Friday will try to break it right after the open, it will be first try, and usually first try won’t work. On the other side the DIA barely closed above daily 10sma. All day was stuck in the middle of daily 10 and 20sma. Look weakest on the daily chart, but also at strong support area and closed at highs. The SPY was in the middle and bounced of daily 10sma with solid volume and closed at highs.
Thursday action suggest that low will hold, but also it will be hard to back at Tuesday high. Several resistances before that and I will expect another day trading day. If wont be changes at the open, I will follow the QQQQ for strength and the DIA for weakness. Wednesday selling pace was strong and we wont see daily flag or base, now is time to see can we see daily triangle for possible up continuation or we will see daily avalanche for swing short setup. Until that dilemma won’t be clearer safest place will be with intraday setups. I don’t have clear bias for Friday so I will wait market open for it.
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