Opening Play for Wednesday 8/6

8-5-2014 4-44-28 PM












Good Morning Traders!

The hourly grail charts got their objective but there is still a downtrending channel that has been developing (see chart above).  The  Russell index has a Sell Short day on the 20 period ROC.  It  is at a critical point because the daily charts had Buy divergences.  I am not so keen on Buy Divergences when the 2-period ROC makes new  momentum lows but will keep this as one “alternative count”.  Market will resolve this on Wednesday.  The Sps had range expansion down on an increase in volume.  The short term summation TIck chart is NOT oversold so there is plenty of fuel for more liquidation.    To the upside:  1922 – 24 was big volume node and should be resistance IF the market has reaction up.  1914.75 was the PDL at market played around with, anad of course, 1907.50 would be a downside test of Tuesday’s lows.

CL tested its previous low and found support.   Pinball sales may or may not be one day wonders….put CL in SP camp!

Silver may be beginning extended run to downside.  15 minute grail sale played out today – can look for 60.120 minute grail sale in another 2 days.

Happy Trading!   Linda








Markets in BO Mode:

BOs from snagit