Opening Play for Wednesday 7/9

7-8-2014 10-00-54 PMCommentary:

Good Morning Traders!

The Russell index sold off 40 points in tow days… it has actually done this several times this year.  The summation tick is oversold and after two days high to low, the market can trade back up to its hourly EMA.  The chart above shows where resistance can come in overhead for the SPs.  There will also be a GRAIL sale on the hourly charts for the Russell.  Each time that the Russell sold off so hard in the past, it has traded in a consolidation range the following day.  The SPs tested down into a previous “pocket” or support area, also a rising trend line.  This can still be broken over the next few weeks as the weekly oscillators have only just  turned down.


Bonds had two big days low to high – there is a Sell Short day,  however, the first push down will be a buy for a scalp (morning session only) and only  short a rally above the previous days high a la Z day style.  The best charts on the board are the Gold and silver – the daily osc poised to flip back up as well as the 2-period ROC.  Price equals time consolidation now has run its course?

Copper and Cows still buy scalps a la 120 minute charts – tough to chase up here though.

DAX has been setting Wednesday’s tone with a consolidation day – see if it can trade back to its hourly EMA.  It will form a shorting op if so  – perhaps on Thursday.

Canadian Dollar has been forming a bull flag – 240 minute chart has power buy structure.

64.50, then 67.25 = main upside reference points for the SPs.

Have a great day!!





Tradesheet from Snagit



3 Bar Breakout Patterns for Wednesday:

BOs from snagit