Morning folks. Looks like we are going to open up green this morning with the SPY up nearly 1% premarket. Overseas action was pretty weak.
- European markets are lower in afternoon trading. Britain’s FTSE 100 lost 0.78%, Germany’s DAX slid 0.7% and France’s CAC 40 fell 0.22% on the session.
- Asian stocks ended the session lower as well. China’s Shanghai fell 1.9%, Japan’s Nikkei 225 lost 1.2% and Hong Kong’s Hang Seng Index slid 1.7%.
To get a bounce after the nasty action we have seen the past few days is pretty normal. Follow through will be key today. Yesterday the bears did a great job of finally coming through with some real selling the much watched triangle pattern that was forming in the market was broken down and done in a decisive manner. We had some meek intraday bounce attempts but nothing serious as the selling continued throughout the day taking out Novemeber lows and landing us right near the 50 day moving average on the s&p. We are at a big support zone in the markets as we have the 50 day moving average underneath but also s&p 1200 is a key number. If we can hold here and bounce the bulls will need a couple big days to get back control possible all the way back to the 200dma ( to break the pattern of higher lows). We are oversold and support so a bounce is a decent probability the question is if it sticks. Keep an eye on the indicies on 30 minute and 5 minute charts to look for potential reversals, intraday patterns have been playing out very predicatably of late and they will give you the first clue if we have a bounce that can stick or not.
swingtrading has still been a challenge but there are incredilbe plays with daytrades still in this market. Earnings breakouts like SCEI still working. Thats where my focus will be. Individual charts are pretty damaged. I went through almost a 1000 of them and only found a few worth anything. If market rolls over keep an eye on the AGS THEY were waxed yesterday all of them got taken to the woodshed. If market rolls over heere they will be my first target for shorts.