Cup And Handle Seen
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 2.50 points higher and the Bond Market Futures are trading up 3 ticks.
In spite of the September Dow [DJU9>DJU9] and S&P [SPU9>SPU9] selling off today, the NASDAQ 100 [NDU9>NDU9], on the Pullbacks Off Highs List, closed well and formed a cup and handle(a). Look for a buying opportunity here.
Source: Omega Research.
For you breakout players, November Soybeans [SX9>SX9] hit three week highs today and may have resumed its choppy uptrend. Look for a buying opportunity here.
Even though December Gold [GCZ9>GCZ9] rallied somewhat today, it still looks like it has the potential to resume its downtrend. Look for a shorting opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!