Good Morning Traders! After a gap down opening, the SPs spent both the morning and the afternoon session rotating around the opening price. The Russell closed at the top of its range – the dip below the 5 SMA was the first decent 120 minute correction in over a week. Indexes closed with Pinball Buys. However, the SPs closed 11 handles up from their afternoon lows, so there can still be an intraday reaction back down…there is good resistance that comes in between 1850 – 1852. 1842 was where the bulk of the volume traded on Monday, also the area of opening price and should be initial support. 1838 was the afternoon swing low.
Bonds Tens and Bunds are testing a previous swing high. Any morning reaction up is a shorting opportunity – and the 120 minute charts may put in a lower high as well. The bunds closed with hourly sell divergences and bonds and tens will follow the bunds down a bit if the sell in the overnight market. Gold and Silver turned back up – the daily oscillator on the silver has only been up one day and even though the sentiment has turned wildly bullish on the metals (hedge funds did massive buying in February), the technicals still look fine, it just makes for a bit of a choppy trade. Copper is on an extended run to the downside. It needs a higher low on the 120 minute before true support can be established.
There are still daily 3/10 sell divergences on the indexes at the same time there are pinball buys. Lots of uncertainty in the air at the start of the month – looking for another choppy trading range session.