Monday, September 20, 2010

Technical Picture - Markets Breakout of Range


The markets gapped up slightly on the open, followed by a brief period of backing and filling. Once that was done, prices advanced through a broad based rally, cruising past last week's highs. Orderly consolidation midday, before the next leg up.

Markets are quite extended in the wake of the run off of August lows, and the NDX which has been leading the advance is approaching resistance -April topping congestion zone.

Map out support/resistance levels as well as trendlines.

Housing data in pre-market and FOMC at 2:15 EST.

SPY- Last week's broken trendline was resolved through time as opposed to price - sideways chop. Today, we established new recovery highs and therefore we have to draw in a new trendline as depicted below.


BIDU carved out a bullish flag chart pattern intraday. Full extension was reached as well as a new all time high.

2 comments:

Banenga said...

got any thoughs on the IMAX setup - 2010-09-21 10:32

Jamie said...

Banenga,

Sorry, I missed your comment. Just seeing it now. IMAX is somewhat extended after yesterday's big move. Resistance at $17.00 on the daily.