Good Morning Traders!
The markets had plenty of early rotation, trading on both sides of opening price. An early morning short led to push down and an early morning Buying opportunity led to a trade back above the opening price and then some.
The early morning rotation, “Z day” led to a chart formation close to a rising wedge…..the downside break carried first to Globex lows and then ultimately back to the high volume node for the previous two weeks of trading. An updated chart is posted once again showing levels for Thursday that serve as good reference points: Support, or resistance, or key well watched psychological pivots. To the Downside, there are unfilled gap areas basis the pit session. The chart above shows these levels on the DOW and the SPs. There are good odds the market can test below Wednesdays low since the close was weak. However, Wednesday was the first pullback after a substantial upswing, and any morning weakness can setup a buying opportunity for a reaction back up.
Both a long term tick chart and a very short time frame representing Wednesdays trading are posted below.
“Sometimes a picture is worth a thousand words….”
On Wednesday, the SPs were sensitive and positively correlated with the intraday swings in Crude. Watch to see if this persists on Thursday. Crude remains weak and can make a full retest down to its 20 day low.
I am down in Florida “on vacation” this week. Regular gas is $2.99 and I am sure that is not the cheapest station either….!
have a great day!