Good Morning Traders! An early morning reaction up of 10 handles after an opening gap down led to highs being made in the first hour. A steady down-trending channel then led to a late day selling climax. The Russell and DAX led the way down. The 2-period ROC made another new momentum low, indicating that the weekly sell divergences are firmly in control. The market has traded three days high to low, but early morning rallies have continued to correct oversold conditions. Any reaction up will lead to hourly Grail sales. (The market may fail to rally to the hourly EMA on Wednesday as it is quite far away. 1981 was the last hour high and is the main upside reference point. Any further morning weakness is a Buy as well as the first test of 69.50, the previous daily swing low, is likely to bring in short covering. The first morning rally can continue to provide shorting opportunities against the down trending channel .
EC: still consolidating daily Buy Divergences after a large standard deviation move to the downside. JY : Fill out range CD: Buy Day but resistance starts at 9030. AD: Oversold – start to consolidate damage done by forming sideways range. HG: Correct to 240 EMA SI – watch daily 5 SMA GC: form ID likely
COWS – good breakout coil – will give downside long liquidation flush below 2-day low
Look for position flattening out as RoshHashanah starts on Thursday!
Have a great day!
Markets in BO Mode: