MARKET COMMENTARY –
In a reflection of yesterday’s estimations, the statistic that suggests a bit higher press before a fade seems to be right on line with what charts are doing. We are holding higher lows after a choppy day that held the line and then we have seen further presses higher.
We are watching the ‘strong hand’ of enthusiasm and keeping the long countertrend push higher in the markets. Mentally, many of us realize that news chatter and hope for the Fed to lower rates is closer. It becomes a wait state as the FOMC needs to have DATA to drive the desire to lower rates.
Tech continues to be weak relative to the other markets as it recovers – the $NQ_F remains vulnerable below 7315. We sit at prominent lower highs for the indices we watch as we did yesterday, stretching a bit higher into the levels near the midlines of higher congestion but could easily press higher before fading.
TAKEAWAY – Bullish bounce in an intermediate bearish trend signal tells us that for the moment as long as we hold higher supports, we will either stay in the range or head higher. Employment numbers are tomorrow.
The backdrop of global slowdown still prevails.
RECAP – $ES_F Buyers now stronger above 2846.75 but face resistance to 2873. The midline near 2853 is the battleground in the $ES_F – for the $NQ_F this midline number is 7315.
Sellers want to move us below 2803 but are willing to wait it out and stage the fade near 2853. This is the current battle and could be a coin toss in terms of direction. Be alert –
Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounce. Lower highs and lower lows confirm to me that the overall pressure still looks negative but slipping neutral in the shorter duration as the counter trend bounce tries to hold a footing.
****OUR METASTOCK MAP IS NOW SECURELY ENGAGED SHORT IN THE SWING MOTION BUT THE FORMS SUGGEST TAKING PROFIT AS IT TESTS LOWER AND ADDING BACK AT KEY AREAS OF RESISTANCE.
DEEP DIPS AND WIDE SPIKES IN PRICES ARE ALWAYS A STRONGER PROBABILITY WHEN THE SWING SIGNAL IS AT A CROSS CURRENT TO THE TREND
ALERT – Still negative formations hold in the swing short – charts are likely to bounce to lower highs. Very excited to see these levels
NIBBLING SHORT HERE AT 2834—STOP IS 2846 …. ANOTHER SHORT SITS ABOVE 2856
Divergence and defense of recent lows tell us buyers are still in the fight as sellers engage actively Here’s a link to the METASTOCK software
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
PROTECTED DATA SITS BELOW –
IF YOU CAN SEE THIS LINE, YOU ARE LOGGED IN
WEBINAR RECORDINGS ARE AVAILABLE BY REQUEST
NOTICE: All user and member interaction and participation with TheTradingBook.com implies agreement with our Terms & Conditions