Morning folks. Market is looking at a flat open this morning. Overseas markets were weak across the board. For the moment it would see our markets are tied to the trading of the euro. Yesterday was an ugly day even though the indices didnt finish off too bad the action underneath was much worse. I went through over a 1000 charts last night and found just a coupledecent longs. We had a prime opportunity to make a big move but as we’ve known for weeks the market to break out of ranges tends to need significant pieces of positive news. We didnt get it so back towards the bottom of the range we drift. The news cycle of the past week has been increasingly negative alogn witht he price action. We are right on support as of the moment. In novemember when we tested the top of the range and consolidated when the pattern broke to the downside it took us down to s&p 1160 area Its not certain we hold here as last time we tested the 50dma in novemeber we knifed right through.
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As we are into opex its a bit late in the game for me to establish short positions as we are going to be all over the place Ill be watching the intraday patterns closely to give me signal if we are going to bounce in the markets or have a big fade.
seeing some low floaters pop up on the scanner this morning. After LIVE went crazy yesterday we were mentioning in chat that RITT usually follows it. Also seeing big gaps in EONC, TSON. This is typical of late Decemeber action as traders get bored and the low floaters come back in play. Ill keep a list of them if we see a mania develop in them.
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lets see if bulls can defend support. Things look a bit grim but we’ve seen big pops come from such cirmcumstances.