Good Morning Traders!
Indexes corrected back to the 120 minute EMA and pushed back below the daily 5 SMA. A close at the lower end of the range can lead to downside followthrough. However, since they closed with Pinball Buys, any further weakness is a buying opportunity for a reaction back up. 1816 – 1816.50 is the next “volume node” (or middle of a prior trading range) to the downside and is important support. This is marked off on the 30,000 tick chart below. Below this there is strong support into the previous pocket area. On the daily charts, the push back up into the prior trading range is evident. 1806 – 1808 marks the lower end of this range. Gold and Silver also have Pinball Buy setups but much better structure since they just broke out of an extended base. Also note the sshorting opportunity in the Dollar index on its close back above the daily 5 SMA after an extended run.
Grains – still trade from the long side on pullbacks to the intraday moving averages. Corn and Wheat have just had three strong days low. In strongly uptrending markets, the best buying opportunity comes in the early AM session. Do not buy late afternoon weakness.