Market commentary for 01/27/2009
Good day!
Week started with whippy intraday action. Strength at the open and then weakness during trading hours with bounce before the end. Indices were all over the place and result is poor. On the 60 min charts we can see that indices stayed in the consolidation area. They tried to break up from rounding bottom pattern, but without success. Right now situation is mixed, but until indices will stay under 10/20sma on the daily charts, bias will stay same. The QQQQ was strongest, while the DIA was weakest, but result is same. The QQQQ reached 20sma on the daily charts and back almost all before the end. Same was with the SPY and the DIA, just difference with moving average. In this case it is 10sma (brown line). For any reversal possibility indices need to form higher lows on the 60 min charts and we will see today is that possible. We are in the earning session and news can move market. Main daily resistance is 20sma and that is key for any upside reversal. As I said before, for now charts suggest bearish bias, but since indices are in the range action (consolidation=, trading risk is higher and safest place is with smaller time frame setups and faster trades. Focus will be on them and possible early swing setups.
Good day!
Week started with whippy intraday action. Strength at the open and then weakness during trading hours with bounce before the end. Indices were all over the place and result is poor. On the 60 min charts we can see that indices stayed in the consolidation area. They tried to break up from rounding bottom pattern, but without success. Right now situation is mixed, but until indices will stay under 10/20sma on the daily charts, bias will stay same. The QQQQ was strongest, while the DIA was weakest, but result is same. The QQQQ reached 20sma on the daily charts and back almost all before the end. Same was with the SPY and the DIA, just difference with moving average. In this case it is 10sma (brown line). For any reversal possibility indices need to form higher lows on the 60 min charts and we will see today is that possible. We are in the earning session and news can move market. Main daily resistance is 20sma and that is key for any upside reversal. As I said before, for now charts suggest bearish bias, but since indices are in the range action (consolidation=, trading risk is higher and safest place is with smaller time frame setups and faster trades. Focus will be on them and possible early swing setups.
No comments:
Post a Comment