Good Morning Traders! The market had an upside breakout from a coil out of very oversold conditions. The SPs were able to make it back up into the prior trading range and now can test up into the middle of it. After range expansion from a three bar coil or consolidation, the market can still have upside follow through. The NAZdaq made it back to its daily EMA in the overnight session and it is easy to see how the daily oscillator buy div have played out. The Russell is still lagging, and after yesterday’s big mark up, any more follow through to the middle of the range for the SPs can lead to a shorting opportunity. The short term summation tick is not qite back to neutral after very oversold conditions. 1776 – 1782 is the middle of the prior trading range and this is a good level to short against.
Yen 0 this can continue lower to its daily EMA, It too had sell divergences on the daily charts. Coffee and sugar – BUY morning weakness (see chart below). CD has the best breakout coil – if upside breakout the daily EMA is the next level up. Bonds and Tens – grail sales on reactions up.
Happy Weekend! Linda