sp'60min
sp'daily5
sp'weekly
Summary
We saw some good volatility again in the market today. Surely the day-traders - those few 'real people' who are left, had some good price action to try and capture?
I expected an intra-day pull back, and indeed it looked as though sp'1634 was the low, but no...Mr Market whacked the market another micro-wave lower, and came within a point of taking out the Monday low.
Had that low failed to hold, we'd probably be looking at the sp'1600s tomorrow.
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Yet..it did hold, and baring some bizarre overnight gap down, the market looks set for much higher levels tomorrow. The hourly index charts are offering a good 4-6 hours on the upside, and that should at least offer the chance of sp'1645, if not the mid 1650s.
The fact the VIX put in a marginally lower high, is further good support for the near term bullish outlook.
Whether we can break above the Bernanke 'reversal day' high of sp'1687, that is another matter entirely. Right now, that is too hard to guess. Lets first see if we can trade into the 1650s, and if Mr Market can achieve a daily close at that level.
Looking ahead
We have ADP jobs data in pre-market, so look for the market to ramp on that. There is also ISM, factory orders, productivity/costs, and the EIA oil report. Further, there is the Fed Beige book at 2pm. That will be plenty enough for the market to deal with.
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*I am heavy long, seeking an exit in the sp'1650s.
Goodnight from London