Good Morning Traders! Last day of the quarter!
Stocks gapped up higher Friday morning following the lead of overseas indexes. The overdone early dog-pile proved to be unsustainable (yet again) once the Russel hit the 120 minute EMA. Breadth still closed quite firm and most shares close well up on the day. The chart of MSFT below still has a bull flag and Friday was only the first day up. Watch for the Russel to put in a higher low on the 120 minute chart which might provide a better base. SPs are already up on Sunday’s opening. 59.50 Friday’s high is the initial upside pivot.
There are bear flags on the short end of the curve (5 year notes and ten year notes). The yield curve (10 – 30 years) has flattened to the most extreme level in the past 5 years. Bonds have a three bar triangle breakout pattern.
AD CD and BP were well bid last week. There are pinball BUYS on AD and CD – buy any morning weakness on Monday. See charts below. GC and SI – deeply oversold but damage has been done – perhaps a bit of price equals time consodliation is due. Just like Copper chart which is probably going nowhere fast on MOnday.
Wheat – still look for correction back to daily EMA. Be aware that a Crop report is out Monday morning!
Have a great day! Linda