Good morning Traders!
SPs followed the DAX down in the early AM session. After a prolonged triangle consolidation, all indexes broke in the afternoon with the Russell testing the previous 120 minute swing low.
A strong afternoon trend is often followed by a consolidation morning. The Russell has also been down two days high to low. Short the first reaction up towards the 15 minute EMA. This should come in below thee triangle breakdown point after the market has been open for 30 minute. A trade back above 1942 would be very constructive for any bulls because 1939 should really be strong resistance. If the market starts trading below the 1924 area, then 1918 will become a magnet.
The Bonds are on a Sell Short day on the 2-period ROC. IF there is not much of a reaction down on Wednesday, there is still a previous high in the ten year notes that can be tested.
Currencies have a Sell Short day as well. The Yen just poked above a previous swing high. Downside is likely to be limited though, as the daily charts can continue to consolidate deeply oversold weekly oscillator. Gold and Silver have daily Buy Div on the 3/10 osc and so can continue to fill out range, or perhaps trade higher. Wheat weekly Buy Divergence kicked in with a vengeance and the grains have now made it back to their daily EMA.
Have a great day!
Markets in BO Mode: