Good Morning Traders!
The upward rally continued and in the process, the DOW made new momentum highs on the 2 period ROC. This MAY be enough thrust to eventually push the DOW to its highs for the year. Today should be a Sell Short Day but scalp ONLY since there is good upward momentum. A pullback to the 20K tick chart EMA (also area of 30 minute EMA was expected when these charts were posted last night. However, the market already retraced back down in the overnight session. Globex high and low have carved out a relatively narrow range and this consolidation can continue into the morning session.
The SPs are not far away from all time new highs either (6+ points). However, the Russell small cap index stalled out around a previous swing high. The generals can advance only so far without the support of the army as the old saying goes….and thus the Russell needs to hold the 1152 area on its consolidation (last hourly swing low). For today – look for better two way trading – short a test towards Tuesday’s high, buy the dip towards Globex lows….
Of Notable importance: The Dollar index continues it upside breakout from the weekly triangle and is in powerful trend mode. How close will it be able to get towards 2013 highs?
Have a good trading day!
Markets in BO Mode: