Wednesday, February 11, 2009

Technical Picture - Consolidation

The opening range quickly set the highs of the session, which was a snooze fest up until early afternoon with a minor breach of intraday supports, followed by a reversal and rally back up close to session highs.

The markets continue to probe but hold near trendline support off of the Nov-Feb lows. As long as the indices can hold above their respective trendlines, there is potential for further retracement over the short term. However, the aggressive rejection from resistances yesterday, gives the impression that the retracement will only be temporary- another lower high. Too early to tell, but these supports could be broken sooner than later, so best to be ready.

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