Opening Play for Tuesday 12/2

December 01, 2014

12-1-2014 11-01-44 PM

Good Morning traders!

Sps filled the gap area to the downside and stayed beneath the opening price most of the day.  Stock indexes have traded two days high to low and one would normally expect a Buy Day.  However, the markets closed weak,  daily sell divergences can still work off, and there is solid resistance above 2061 on the chart shown above.

Traders can look to BUY  an early  test down below Mondays’ low, should there be one  – and play for a trade back up into Monday’s range. OR< if the market gaps up  or trades higher first, a short sale can be made against the 2061 –  2063 area (in general).  See basic resistance area on the chart.

A persistent decline in bonds suggests that the weekly charts are ready to turn down.  A lower high on the hourly charts would be ideal but it might come in at a lower level than one would hope.

Any buyers left in Gold and Silver?  (joke)   markets need to find an equilibrium  again  after extreme volatility both down and up….

For Tuesday:   watch the 120  minute charts:  There is a pinball SALE on CL – how far will the 120 minute retrace back down.

We will update in the morning if there area any significant overnight moves!

Linda

 

 

 

 

Commentary:

Tradesheet from Snagit