Tuesday, February 23, 2010

Technical Picture - Broad Based Selling

We were expecting weakness in the ambush zone as the markets were technically overbought and last week's advance came on light volume. The 10:00 consumer confidence data was so far below expectation (46.0 vs. 55.0) that the bottom fell out leading to a broad based retreat into midday. Attempts to rally from there were lame, with the bears firmly in control.

POT and MA printed inside bars with long upper tails foreshadowing weakness. Both trades triggered at 10:00.

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