Market commentary for 01/29/2009
Good day!
FED keeps rated exceptionally low and Obama administration plan for banks brought market up at Wednesday. Day started with good new for banks what pushed market higher at the open. Gap up was strong and Indices opened above daily resistances. After NR7 bar and strong gap it was expectable to expect trend day, what we got in the morning. Problem was with FED announcement at 20:15 pm ET what increased risk, but after FED keep unchanged rates stocks had enough reasons to stay strong. We saw correction after 21:00 reversal period and right now we can see that was just false break down. Before the end indices back that intraday reversal and closed near highs. If we look at the 60 min charts we can see that the QQQQ was strongest and reached equal move resistance area, while the SPY and the DIA still have room for it what suggest for continuation in the morning. The DIA was again weakest and still have room for equal move and 200sma resistance area, while the SPY closed above 200sma, but still have some room to reach equal move. Daily chart show same strength/weakness confirmation. The DIA still have room for 20/50sma, while the QQQQ closed strong above all moving averages. The SPY was again in the middle, reached 12/05/2008 high and gap area and also closed barely above 20/50sma.
For Thursday morning I will look for buying continuation and charts suggest that action, unless we will get some bad news, what is always high possibility in the earning session. Financial sector got new injection but we must still know that on the bigger time frames we are still in the bear market. So caution on long side is still open. If indices will hold this levels next days, odds for back on previous daily high will increase. But that depend on correction what we can expect after the morning action. You all know that after trend day we can expect consolidation day and from that action we will know better what to expect. Right now, new swing trades will be higher risk and safest place will be with intraday setups, but still good to compare individual charts with market action for possible new swing setups.
Good day!
FED keeps rated exceptionally low and Obama administration plan for banks brought market up at Wednesday. Day started with good new for banks what pushed market higher at the open. Gap up was strong and Indices opened above daily resistances. After NR7 bar and strong gap it was expectable to expect trend day, what we got in the morning. Problem was with FED announcement at 20:15 pm ET what increased risk, but after FED keep unchanged rates stocks had enough reasons to stay strong. We saw correction after 21:00 reversal period and right now we can see that was just false break down. Before the end indices back that intraday reversal and closed near highs. If we look at the 60 min charts we can see that the QQQQ was strongest and reached equal move resistance area, while the SPY and the DIA still have room for it what suggest for continuation in the morning. The DIA was again weakest and still have room for equal move and 200sma resistance area, while the SPY closed above 200sma, but still have some room to reach equal move. Daily chart show same strength/weakness confirmation. The DIA still have room for 20/50sma, while the QQQQ closed strong above all moving averages. The SPY was again in the middle, reached 12/05/2008 high and gap area and also closed barely above 20/50sma.
For Thursday morning I will look for buying continuation and charts suggest that action, unless we will get some bad news, what is always high possibility in the earning session. Financial sector got new injection but we must still know that on the bigger time frames we are still in the bear market. So caution on long side is still open. If indices will hold this levels next days, odds for back on previous daily high will increase. But that depend on correction what we can expect after the morning action. You all know that after trend day we can expect consolidation day and from that action we will know better what to expect. Right now, new swing trades will be higher risk and safest place will be with intraday setups, but still good to compare individual charts with market action for possible new swing setups.
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