MARKET COMMENTARY –
Traders continue the bet that the global trade news will be positive are enjoying the upside pressure seen exerted on the markets this morning – even after the selloff yesterday. Resistance levels outside yesterday’s highs are estimated with either Fibonacci’s or measured moves. Bullish behavior suggests that we will bounce off the support tests but caution with size is recommended here as divergences exist across the board.
Gold bounces back to 1397 (see prior posts). The dollar holds steady. Remember that the goal is for the dollar to remain weak so that exports can gain traction against other currencies so we’ll need to keep our eyes on the FOMC as they come out in July.
BIG PICTURE -Daily momentum is positive to neutral and bounced off critical support.. Quiet trading into the weekend.
INTRADAY RECAP – Bullish but cautious. Selling ES will be tricky without intraday exhaustion but the Fibonacci level to watch is near 2974.5 with stops a bit tighter- or buying near 2947 – with tighter stops also. Getting chopped up would be likely so watch your size. Whipsaw is likely between these two levels. Holding 2955.5 is a critical zone.
POSITIVE TO NEUTRAL SLANT – Manage your risk by waiting to the edges and playing the range with a slight bullish slant intraday.
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.
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?
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