Tuesday, December 02, 2008

Technical Picture - Inside Day

The market started off on a positive note given yesterday's extensive selling, but the entire move off of the lows was on low volume. Prices stalled in the ambush zone (50-62% retracement of yesterday's selling range - ambush strategy used by John Carter and co. at TradetheMarkets.com) and reversed for a sharp pullback. After stabilizing, we got some wave action and managed to close at fresh session highs on bigger volume.

Until prices move above the ambush zone, we are still in an ambiguous posture.

Nasdaq Emini futures trade - took some off when we retraced back to yesterday's late session BO point. Exited balance after price stalled at 62% Fib. retracement and broke the trendline.

The USD consolidated as did most sectors, so we'll just have to wait and see how things develop.

3 comments:

Dinosaur Trader said...

Hey, bearish guy, how you feeling about these past two days? Two bullish reversals (granted we still have a way to go today).

-DT

Jamie said...

Hey DT,

I'm tired of being bearish, wish the bulls could put some momo into their game. If S&P can't hold 850, I'm still bearish.

Dinosaur Trader said...

Yeah... I actually feel very similar. I'd love a nice rally.

-DT