Opening Play for Monday 10/6

10-5-2014 11-03-42 PM

Good Morning Traders!

The market rallied sharply on Friday.   The Russell cash gave a wide range reversal, indicative of a V-spike type of bottom we have been seeing for the past three years.  The Nasdaq has held the lower end of a rising channel and the small caps held a test of key support last week.  The 5 and 10 day moving average of the Trin got deeply oversold and the VIX signaled a mini selling climax.  The SPs were able to close back above the 1955.50 pivot.   1966 – 68 is the middle of a prior trading range.  If resistance does not come in here, then it is likely the SPs will test the upper end of this range sometime this week.  This comes in 1977 – 79  area.

For Monday – short an early AM rally into the 1966 – 68  area – it may prove to be a scalp only/   1964.50 was Friday’s high.  Downside support comes in at 1955.50.

Copper has a daily Buy Divergence.  The commercials have established a substantial long position, indicating that Copper might be forming a  cyclical low here.

Soybeans have a powerful breakout formation.  The grains  can continue to ratchet their way back up to the daily EMA.

EC made a lower low  while the Yen made a higher low.  Both are very oversold, but the Yen should be a better vehicle to scalp to the upside as the collar index consolidates.

Happy trading!



Tradesheet from Snagit



Markets in BO Mode:

BOs from snagit