Opening Play for Monday 2/3/14

After testing the lower end of the 5 day trading range, the Sps were able to trade back into the middle of the range.  The daily RSI is oversold, but many shares made new momentum lows as well, suggesting a reaction back up will be choppy and limited.    The ECB meets Feb 6th and there is speculation of a rate cut.  US indexes could range trade into this date.   Main upside levels:  1788, 1791, 1796  main downside level:  1774, 1768.

EC made new  momentum lows on the 2 per ROC.  Any reactions up will be limited for the next two days.  The Yen is forming a good chart formation on the 240 minutes – it can breakout in either direction.   The bonds  tens  and Bunds are grossly overextended and forming a rising wedge, but can hold a bid the first trading day of the month.

Copper – Buy divergences suggests a limited bounce, perhaps to 240 minute EMA.  Gold and Silver:  BUY DAYS on the 2-period ROC

The SPs had a failed push below the trading range low, and often this can lead to a test of the upper end of the range. 

The chart examples below:   Yen formation,   tens –  rising wedge, can stay up one more day,  Russell – oversold osc is correting up – seee how close to top of trading range it gets,  Copper – end of downswing for now, upside  limited.

 

2-2-2014 10-32-19 PM

Commentary:

 

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