Wednesday, July 7, 2010

Market view




Possible short term momentum change on the daily chart. Watch the MACD histogram for a confirming close above 1042.50. If that occurs we could rally to the 50 % Fib from the 1131 peak at 1071, or the 61.8 % Fib at 1085. That would fill the gap made on June 29.

We also have a possible inverse H&S pattern on the 15-minute chart, but need to finish the right shoulder tomorrow. The short trade is crowded, so any good news, could result in an explosive rally to 1082 later this week, or next....but IF we go down more today I would like to see a test ot right under 1010(exactly pivot number is 1007) and THEN rally back up - but either way I am bullish for the very short term. Have a nice day !

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