8/31/2010 premarket | Bulls on Wall Street

8/31/2010 premarket

 
 
 
 Morning folks looks like we are gonna have a weak opening. SPX 1050-1040 is the level we will probably open around. OIl looks weak. After yesterdays shellacking Japan has been gunned down to a tune of -4%.  Right now the market is a bit wishy washy.  No real conviction either way.  Next level of support is 1040 thats the key level to watch today if we start falling.
 
As always this is bear market trading keep lots of cash. Quick trades are a must. Long holds get faded.
 
we got some data today 
 
9AM Case-Shiller Home Price Index, 9:45 Chicago PMI, 10:AM Consumer Confidence, and 2:PM FOMC Minutes. Obama is also scheduled to chat with the nation tonight.
 
With an opening right around support levels we do have a potential opening gap reversal setup play that might emerge so lets keep an eye out for that.
 
1 quick note. in my years of trading one thing is certain. The more times a market tests support the more that number gets confirmed as a support area. But after 3-4 tests everytime we pull back to that area and tap it the greater the probability is for a big break of that area.  So lets keep an eye for that.
 
Levels to watch. 1040 breaks than SPX 1015 is the next logical buy area.
 
 
 

 

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