Opening Play for Monday 6/23

June 21, 2014

6-22-2014 7-33-46 PMCommentary:

Good Morning Traders!

The day week after triples expiration in June tends to see some selling.  The put call ratios have finally dropped down to overbought

 

levels.  (see above).  The short term summation tick and closing tick indicator can still allow for a bit more upside but the fuel for this rally (bearish sentiment from a month ago has essentially been used up.  The Russel index is the main one with an upside test on the weekly charts of all time highs.  For Monday – look for a bit of profit taking as triples indigestion sets in.  The daily 5 SMA comes in at 1948 – a good benchmark to watch in such a strong uptrend.

Bonds tested and held the lower end of their trading range while Tens did not confirm.   The ten year notes have also had two days high to low and are on a Buy Day.

Sep Wheat is forming a bottom and Friday was a needed retest down.  It sets the stage for better trading from the long side though typically a broad trading range fills out on the daily chart after such a downtrend.

Crude got its upside objective on Friday…The uptrend is firmly intact but the market is over weighted to the long side up here.

A full retest up on the weekly Russell will come in around 12 -14 points higher.   Daily 5 SMA first or full retest up? The Russell closed with an NR7 bar and the Nasdaq has a three bar breakout triangle.

Have a great day!

Linda

 

levels.6-22-2014 7-43-29 PM 6-22-2014 7-41-06 PM

 

Tradesheet from snagit