Jobs numbers deliver a muted response this morning and we sit below key levels of support with a bearish slant overtaking the market after wild swings on tweets of further tariffs.
PRICE ACTION -The e-mini S&P retreated to the base of deep congestion levels near 2933 where it is currently stalled. The mini Nasdaq slipped below another key support level near 7740 where it is also stalled. The mini DOW failed the deep support level near 26560 and still sits below it. A negative slant has drifted over the market but from fast moves come failed moves – so a cautionary note about further downside that quickly recovers should be on the mind as possible.
COMMODITY WATCH -Gold is above the higher breakaway level of 1442 but is under negative divergence. Now holding support of 1422 is the bullish entry. The USD index holds above 98. and that big bounce we were estimating is in full swing as we stretched into 99 and then faded. The ‘tit for tat’ behavior of other central banks will like push the dollar down when that begins – but before then, we will likely see more upside. WTI Oil faded sharply holding well below breakout regions near 57.16 and now setting just above key support levels near 54.4
INTRADAY RECAP – Another decision zone – but with a bearish slant as we come into deeper support. The levels and range between 2971 to 2924 is the watch data for the e-mini S&P’s. The mini Nasdaq holds the range between 7846 and 7712. Be careful here on the edges as we could accelerate out and continue if buyers or sellers get heavy on the edges.
OVERALL -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.
METASTOCK SHORT ON THE BOUNCES WILL ENGAGE ONCE MORE- Entries at or near 3015 with a 10 point stop will begin the downward cycle again.
If traders push us to close above 2976 today, we will have to consider a REVERSAL long on the upside for the short term
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
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