Good Morning Traders!
The market had a much needed oversold rally which traded back to the hourly EMAs and then some. Shorts covered into Rosh Hashanah and there can now be a reaction back down. 1983.25 was Wednesday’s high volume node and it is easy to see on the chart above where good support should come in. Initial support is at 88.25, Tuesday’s high, but SPs would be expected to drop back below this. The Dax, too, is up against a resistance level as is the Russell (which barely poked through the daily EMA). On the flip side of the coin, Nazdaq shares, in particular biotechs, have compelling charts for the bulls, (though overbought short term at this point).
Look for two way trade today as the markets digest the recent big ranges and some market participants stand aside in favour of the Jewish Holiday.
Have a great day!
Markets in BO Mode: