Good Morning Traders!
The Dax led the way higher in the early AM session and the Rus and the Naz made a full retest up on the 120 minute charts. The SPs and Dow fell short. The TICKS had the narrowest range in many weeks – an Inside range…an indication that momentum is dying despite the well bid small cap shares. Of course the market is overextended as well…. The Non confirmation on the upside test can setup a play to fill the GAP area left from Friday’s session. 2054.75 is the start of this area. The SPs may need 2-3 days to correct down as the DAX still has plenty of residual upside momentum, even tho it too is short term overextended. 2072.25 is the high test for the SPs. 1190.50 is a full retest up of the last daily swing high on the Russell. (1205.40 is the contract high basis Dec Rus futures).
Any further weakness in the Crude can find support in the “pocket area” (rising trendline above). Crude needs a second higher as the current structure formed a power sell on Friday.
The Yen has a three bar triangle breakout anda U turn ( taking out the last 240 minute high after falling short of a full retest down) can lead to a push back to 85.40 – 85.70.
Silver and Gold also have breakout formations – if Silver closes above the 5 day high, the weekly buy div may have a shot at the 20 period EMA.
Monday was a dull affair after options expiration. But….still plus…27 closes on one side of the daily 5 SMA now! “Turnaround Tuesday”?
Markets in BO Mode: