Let The Markets Play It Out
Despite
it being a holiday trading week, there are several economic numbers
out that should give the market some much-needed direction.
As we all know, the longer the markets remain in a trading range, the
larger the magnitude of the breakout. Unfortunately,
the market appears to be having difficulty holding on to intraday gains, not a
good sign given the technical resistance the indices are currently up against.
But enough of the speculation, let the markets play it out, I will simply
be ready and waiting to trade it in either direction.
Friday afternoon’s crazy
activity, compounded by extended NASDAQ trading may spill over into the opening.yes”> While I do not see a trade setup off of this necessarily, don’t
be surprised to see some sort of retracement of those late-day price spikes.
Looking ahead to today’s
action, I suspect that the opening will continue to offer ample trading
opportunities, especially at 10:00 AM EST with the NAPM release.
Traditionally, the 10:00 AM number offers great trade setups.
As mentioned earlier, the S&Ps are having a tough time breaking into
higher ground, specifically, a close above 1245, or better yet, 1251.
Good support has been found at 1233 lately and should continue to be
unless some bad economic numbers are released. The
1233 level is simply a 40% retracement of the June 26 low and June 29 high.
The Nasdaq, stronger than the
S&Ps in recent sessions, is in better shape, technically, Friday’s close
at 1846.5, the 50-day average, was encouraging. I
suspect that the NASDAQ will need to make a run at the 1900 level in order to
keep the upward momentum going. Support
is seen at 1846.5 and 1810.
Thought For The Week:
Traders
must discipline their bodies and their minds just as athletes do, until certain
behaviors become automatic.
Until tomorrow…good trading.
Dave
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