Opening Play Wednesday 8-27

8-26-2014 3-29-05 PM

The  Russell led the way  higher  with up opening followed by trend day up.   Rotation marked the trading session with profit taking in RS leaders such as GILD,  AAPL  and TSLA, but  good buying in oils,  V, IBM and AMZN.  Indexes have been on extended runs and only  the 5 day  moving average of the Trin is registering overbought signals.  This is not one of the more reliable indicators these days though….

Thee Dow Jones Industrial Average just  TOUCHED its all time high.  (the previous push up to new highs  was in the Dow  futures).  And of course the SPs continued to have lots of play around 2000.

Same theme persists:   Extended runs can continue on for upwards of 24  closes on one side of a daily 5  period simple  moving  average.  The first flush below this or close below  still sets up a Buy.  The 5 SMA is similar to the 120 minute EMA.  There will be  grail Buys on the first consolidation to this area.  Currently in the SP it is at 1989.50 now.  The day session gap area remains unfilled by just a  few ticks.    There is no overhead resistance in the SPs.

Ten year notes may be  forming a Head and Sholders top on the 240 minute charts.   There was a feeble upside breakout  attempt  from and OD/ID pattern  that failed to lead to any range expansion up.   Bonds may well be putting in a first lower high too.  The daily EMA currently comes in at 139’17

3 day Holiday  weekend coming up!

Roll to Dec Wheat.