Traders Anticipate Positive European Debt Resolution
Last week I mentioned that you could see that market psychology has changed and that the market was looking for reasons to go higher. Negative news from Europe was being shrugged off and any signs of non-negative news (not necessarily good news; non-negative news) was taking prices higher.
That continues to play itself out as any negative news yesterday was shrugged off and the blue chip industries moved higher. The same is holding true this morning. Any substantial positive news from Europe has the potential making of a triple-digit rally in the Dow and this will move many of the indexes above their 200-day ma.
For today, the market is slightly overbought. You can see from the lack of set-ups both on the long side and on the short side in The Machine that price-wise there are not many edges on a short-term basis. As we know though, this is often short-lived and when the market breaks-out, there will be ample opportunities. Patience while waiting for the move is the best course until these quantifiable edges appear.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan, click here for more information.
Larry Connors is founder of TradingMarkets.com