Thursday, December 11, 2008

Technical Update - Gap Fill

Last night we said that NR7 price/volume contraction implied price expansion, but direction was not clear. Today we had expansion in the form of a gap fill.

Based on how we closed, we had plenty of room between the trendline. However, after hours S&P futures are ripping lower, the trendline is broken. The trendline is approx. 860 and we are now trading at 833. Should be an interesting open.

The senate has rejected the U.S. auto bailout. Harry Reid, the majority leader said, "It's over with, I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”

USD fell sharply as energy, gold, and commodities rallied on the open. USD is now in a support zone and near the trendline.

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