Tuesday, December 14, 2010

Technical Picture - Markets Mixed

The markets gapped higher after China decided to put off its interest rate hike. The $USD had a sharp retracement sending commodities higher. The DOW which has been lagging, finally breached the November highs, but sellers took control of the close, sending prices back near BE and a mixed finish (tech and small caps finished in the red).

BBY earnings miss $0.07 and downward guidance is weighing in pre-market. However, PPI and retail sales were favorable. The FOMC rate decision at 2:15 EST is highly anticipated. I'll be watching to see how the $USD and GLD react.

The $USD uptrend in intact, but yesterday's sell-off leaves the door open for further downticks. I'm watching to see if supports will hold as prices push back towards the ambush zone, and if the RSI will hold the 40-50 levels.

MA from the HCPG newsletter, was the best trade of the day as depicted below. Next levels of resistance are outlined on the daily chart above.

SOHU Fibonacci retracements in play are $68.73, $65.91, followed by $62.33.

NFLX Fib. retracements in play are $181.00, $176.40, followed by a gap fill at $173.00

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