Opening Play – Friday 8/8

8-7-2014 3-43-03 PM8-7-2014 3-51-24 PM8-7-2014 3-22-35 PM

Good Morning Traders!

The SPs  and Dow were only able to TEST above their 5 SMA but no close there.  As is so often the case in downtrending

markets, highs are made in the first hour. In this case it was the first 5 minutes.  The markets remain on extended runs to the downside,

so expect more of the same – Rallies to fail.  it is impossible to set targets to the upside or the downside, but it has been one of the

longest periods ever where the market has not retraced back down to the weekly Keltner Channels basis the SP cash, so keep an open mind always.

About 40 handles lower is where the SPs spent the majority of their time this year (around 1872 basis SP cash index).

we are approaching a key breakout level from earlier in the year.
As a caveat, the 120 minute chart of the SPs made new lows while the Russell made a higher  low.    The 120 minute EMA should provide resistance if there is a reaction up.

There are three pushes down on the 120 minute SP  and DOW and the 18K tick chart close with Buy Divergences.   Still prefer working the short side – shorting rallies …just be patient!

Wheat will have an hourly GRAIL buy on any  further dip.  Silver has a very nice 3 bar breakout coil

Have a great trading day!