Monday, January 26, 2009

Technical Picture - More of the Same

The markets were unable to sustain early strength following the better than expected existing home sales and leading indicators. S&P and Nasdaq both took out recent range tops, but DOW did not. This non confirmation led to a full retracement, followed by 50% bounce back to end the day modestly higher. Financials were once again the weak link, and this is starting to feel more like a bear flag than a box play.




As anticipated $USD moved back below trendline and into the wedge.

Trade Setups for tomorrow:

MS and GS testing trendline support. If they break, we can expect a nice retracement back to pivot areas.


ABX - another name testing its trendline on 15 min. Could be a good for a gap fill.

2 comments:

Jim said...

Hey Jamie,

V and MA look interesting - see the dailies.

Jamie said...

Hey Jim,

Thanks for reminding me. I went through my WL earlier and forgot about V. Definitely looks like a bear flag BO setting up at $42. MA $120.