GOOD MORNING TRADERS!
The well watched Russell index made a key reversal day – gapping above the previous day’s highs and trending lower to close below the previous days low. As you can see in the top chart, it still is holding an uptrending channel line, though. Good Support comes in at the previous 120 minute swing low. The DAX managed to close above its previous 20 day high and can still work on up for a full retest up on the daily charts. A drop back below the recent 20 day high would turn the daily charts back down.
Bunds closed with a pinball BUY…but the bonds already had a wide range so may not get much more upside …it is rare that not more markets are in breakout mode in front of ECB but Tuesday already had a proliferation of trend days. Gold and Silver: A close back above the previous 20 day low would indicate a bear trap and lead to a trade back to the upper end of the prior range (marked off) There is an upside seasonal which kicks in next week on both gold and silver. Copper also has a potential Buy Day after a downside flush on Wednesday.
Main levels for the SPS: 2000, 2003.75, then 2006.50, and 2011 to the upside. 1995.50, and 1994 1989 to the downside.
Wishing a great trading day! Linda
Markets in BO Mode: