Good Morning Traders~!
Despite the extreme range in the SPs the past two days, the down trending channel on the Russell 120 minute chart has remained intact. There is no bottoming formation or buy divergence, and so the odds favor continuation of the downside. The SPs are not far from the last daily swing low of 1918 as well. The DAX just tested a previous swing low on Thursday (see chart above) and will likely take it out. Upside resistance levels in the SPs: 1924, 1928. To the downside – 1920.25 ( Thursday’s low), then 1918…then?
Wheat has the first pullback below the 5 SMA after an extended run to the upside. However, the daily charts are still have a down trending channel. This would not be one of the better 5 SMA trades.
There are no pinball buys or sells and most of the financial markets had wide range days. Friday tends to be the smallest range day of the week.
Gold closed 15 dollars off its highs. A trade into the 1215 – 1218 can set up a buy as support should now come in at the middle of the prior range. same with silver – look for support in the middle of the prior range.
Crude is on an extended run to the downside. http://www.mrci.com/pdf/cl.pdf Monthly charts suggests a test of 80 is possible in the next few weeks.
We will update in the morning if there is any significant overnight action. Other than that, not many compelling setups other than looking for a bit of follow through from Thursdays action.
Have a great trading day!
Markets in BO Mode: