Opening Play for Thursday 10/9

October 08, 2014

10-8-2014 10-28-25 PM

Good Morning Traders~! A double bottom on the test of 1918 led to a 46 point rally  back up.   The SP and Rus had an outside UP  day,  also wide range reversals which can signal the start of a daily swing back up.  The SPs  would need to take out 1971  to confirm this  though.  The dollar index too, is undergoing a much needed correction/consolidation.  So far on the weekly charts there has only been one down bar.  However, overall downside may be limited as the Weekly charts made new momentum highs.  still,  look for AD  CD  JY  EC  GC  SI  etc to consolidate to the  daily EMA. Gold stocks may have put in lows for now –  check out the chart of  NEM  ASA,   etc etc.  GC  and SI put in a higher low on the 120/240 minute charts. Gold is close to the daily EMA _  silver should work back towards this level as well.  The daily chart above shows just how deeply oversold  silver is.

SPs:  To upside,  1966,   (1971 swing high).  To the downside,  good support at 19555.50.  then  1952.  The first pullback to the 15 minute EMA (Basis the PIT  session)  should also provide short term support areas. Markets in BO Mode for tomorrow: BOs from snagit