Wednesday, March 30, 2005

March 30, 2005: TD

After close analysis:

Market made a statement today and held its ground with a nice reversal to the upside. It's clear that AB & ES levels I talked about last couple of days are worth something. Yesterday's fake break as I suspected resulted in a violent reaction to the upside, and that's why I don't like to play continuation on late day breaks in the following morning. So what do I do? Will watch for long setups as long as the 9-day ema is cleared to the upside. Ema zones are usually fraught with chop.

Observation(s) of the day: Add and Addq had what I call the "crocodile" pattern: the emas just have this creeping parallel straight line action with a slight +ve xover then all of a sudden diverge (open mouth)...spooky...

Market breadth was very strong to the upside, almost the opposite of yesterday! Vold recorded its best level in quite a while (@1000+). Add and Addq also opened and traded higher than previous day all day.

Futures were strong today, especially NQ which traded above its ema all day - been a while. AB had a nice range (finally!) with ES also showing a nice TD. AB didn't clear its previous b/o pt. while ES and NQ were able to consolidate and do so after some consolidation above these levels. ES200R is in +ve zone.

Indices established some bottoms. Semis have a clear triple bottom with multi-day H&S breached to the upside. Also, during the day, the consolidation rested on the ema then took off to the upside which is a good sign for the long side. Dow after yesterday's fake break yesterday had similar price action and cnsld/traded above recent multi-day ascending channel. Closest area to watch is the 10630-50 area for resistance.

Overall positive day!

0 Comments:

Post a Comment

<< Home