Good Morning Traders!
Indexes tested the upper end of a broader trading range, the Russell made it through the daily EMA, once again the market started out strong out of the box with a large opening gap, but highs for the day were made in the morning session with the SPs closing just below the op0ening price.
Often after three pushes down on the intraday charts, an A B C correction unfolds as the daily oscillator continues to correct. Monday was A leg up and then the start of B down. The 2-period ROC suggests a Sell short day and there is also a pinball Sell on the DAX. However, since there were NR7s in the SPs, the market can still trade in either direction. 1941 is good resistance. TO the downside, 11916 – 20 support, and 1931-33 was middle of a trading range for Monday 24 hour session.
Bonds too had an NR7 – they can still make a shallow consolidation and form and A B C down, opposite the SPs. If they hold 139, then expect a retest back up to 140 later in the week. If they fail to hold 139, a drop back into the middle of the trading range, a la 138 is probable.
Silver has the lowest TP count – this highlight a 120/240 minute chart formation that can lead to an eventual breakout.
Currencies remain in dull trading ranges “August style”….It looks to me like the dollar is forming a consolidation zone up here after a very impressive trend move.
have a good trading day – Linda
Markets in BO Mode: