Since the market got the green light from Bernanke and the QEinfinity policy, the Dow Index cleared past the yearly highs and went on a 350pt run in a few days. However, in the last six, the has consolidated forming a series of overlapping bars between the 13653 and 13495 levels.
Although i'm not sure how much longer this range will hold since we have had three touches on each end, as long as the intraday price action looks corrective, both bulls and bears have plays at the aforementioned levels.
Medium term I favor an upside break, but sbeing in a range, you have to trade it like a range. Thus, I'll be watching intraday price action clues for selling towards the highs around 13653 with tight stops above, and looking for buys around the 13495/13500 area until the range breaks so some potentially profitable setups here with low risk and strong reward.
Upcoming Economic Announcements:
|EUR German GfK Consumer Confidence Survey||02.00EST|
|GBP BBA Loans for House Purchase||04.30EST|
|CAD Retail Sales (MoM)||08.30EST|
|USD Consumer Confidence||10.00EST|
|USD House Price Index (MoM)||10.00EST|