Tuesday, March 10, 2009

Technical Picture - Reversal Day

The pre-market news that Citigroup earned a profit over the last two months lit the fire, setting the stage for a gap open and some serious short covering. Financials lead the way, but tech outperformed the broader markets. Volume was strong and the markets closed on their highs leaving the door open for some follow through. Looks like a bullish morning star reversal pattern on the daily.

Watch the bearish gaps from last week as these might act as resistance.

Crude inventories tomorrow at 10:30

Two hanging men on the USD chart in three sessions foreshadow a reversal. Waiting for confirmation.

Financials have bullish gap support as well as bearish gap overhead.

A lower low will confirm new downtrend for gold.

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