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Market commentary for 06/15/2010

Market commentary for 06/15/2010 

 

Good day,

 

Markets are being driven by news, before the open Europe reported strong economic activity and we gapped up. At 3:00pm Moody's downgraded Greece (a little late IMO) and the markets sold off. Regardless of the news there is no volume and therefore no direction to count on. We are in a range bound market and with it a scalp day trade type of market. With the  gap up the DIA/SPY reached the daily 200sma resistance. The first try it was too strong to be break it and as said above the afternoon range action saw a reversal period sell program that started and the indices filled the gap and closed at the lows. As I explained yesterday, I will watch for a selling triangle possibility but at this point the risk is higher because the indices are still above daily 10/20sma what are good support areas. I will look for swing short trades, but I like to note that I will start with small risk as a swing trade and if trade is working I will add to the position under daily 10/20sma support. At this point and with summer action already here, the odds to remain in a daily range a high.  I will look for selling the indices under Monday's low with stop above Monday high. Also this idea is in line with the weekly DIA head and shoulder pattern. I’m not happy with a bear market but I will be happy if we will see that pattern work, up or down, if not we could just see a boring trendless market for the summer.
 

 

http://www.xpertstocktrader.com/index.php?option=com_content&view=article&id=52&Itemid=62


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