Opening Play for Wednesday 5/28

5-28-2014 6-41-14 AMCommentary:

Good Morning Traders!

Stock indexes continue on an extended run to the upside.  Even though there have been multiple days from low to high,  this is one of the characteristics that can mark an extended run as the entry opportunities into the trend come in the AM session more often than not.  If there is any morning  dip down, there are hourly grail buys underneath, meaning downside is limited. Both the DOW  and the Nazdaq are within striking distance of their all time highs so the indexes may goose up to this level first.

Crude also remains on an extended run –  dips have been buys.  yesterday it tested below the 5 SMA but closed back above.

Ten year notes are working on a  full retest  up  from recent bull flag.

Lastly, Nat gas had a breakout bar yesterday with range  expansion up.  45.78 is the first pivot to the upside.

overall sentiment readings do not reflect any bullish excess.  A high put call ratio environment marked the launch of this rally.  The market can stay well bid until sentiment readings swing to the opposite side. Additionally, the correction in the small cap indexes appears to be over.  The Russell has had 5 BIG up days  low to high.  Expect some consolidation to the hourly EMA as well.

Have a great trading  day!


Tradesheet from snagit