Good Morning Traders! An early morning dip providing a buying opportunity for a retest back up. The 2-period ROC made new momentum highs as noted below and this leads to higher prices a good percentage of the time. The upside overhead trading range comes into play above the levels marked off on the chart below.
Yellen will be giving her much awaited testimonty at 10 AM EST. There is undertainty if she will follow Bernanke’s directive regarding the pace of taper, or slow it down as a result of the past two months economic data. Most of the market closed with NR7s so they may come to life after her testimony. Recetn big releases have resulted in sharp gyrations in both directions immediately following the release.
The AD closed with a power buy and is trading higher after encouraing nightly concumer confidence reports. The weekly charts remain in control. The EC is poised to break a downsloing daily trendline ein which case the weekly charts can give a push back up here as well. Gold is making new 20 day highs with this data as well. The hourly charts have remained in an uptrending channel. Lastly, a good morning flush back below the daily 5 SMA in the copper market can set up an agressive buying opportunity. It is at the lower end of a broad trading range but needs this retest back down.
Have a great day! Linda
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