Opening Play for Friday 5/23

Commentary:

Good Morning Traders!

The Russell tested the upper end of its range but did not close above the key 1115 handle. The Nazdaq held its upside breakout and continued on higher.  And the SPs and Dow tested up but the best of their range expansion came the previous day.  The day before this three day weekend has a seasonal upside bias – however, this is well known and that market in part has anticipated this.  Still, as long as the Nazdaq holds its upside breakout, sell pressure should be light.  The 2-period ROC is poised to flip down, suggesting a Sell Short day. Short a morning rally above three previous days high.  Or…a  lower high.  If volume is on the light side, though, Scalp only.

The intraday pit charts show an A B C move UP on the hourly SPs.  However, the last up leg was greater than the previous up leg and greater than the previous down leg, so the odds still favor more up after consolidation to the hourly EMA.

The bonds tested down but the ten years held the bottom of their trading range. Non confirmation of sorts –  look for the Bonds to trade back up today.

Crude – Buy any further morning weakness.

Have a great trading day and an even BETTER Three day weekend!

Linda

5-22-2014 2-49-37 PM

 

 

Image #2

Tradesheet from snagit