Tuesday, May 26, 2009

Trading Range Travel Day

SPX pulled back to support at 876 and held for a third time (Red Line). It also held the 20-day (Green Line). This was a natural place for the futures buttons to be hit and the move accelerated from the start of trading.
Today was nothing more than a violent move across a 5% trading range.

The NASDAQ 100 pulled back into the 200 day and held (Blue Line). The buttons were pushed from the open today and the market launched.

Here is the 5-minute chart of the NASDAQ 100 over the last two days of trading. You can see that it gapped down hard today and then ramped for 40 points (about 3%) in the first hour of trading. That is not mom and pop, that is Goldman and Morgan Stanley pushing the buttons.

I want to see breakouts. I am looking in Oil Service and Financials to see if they can breakout again for another leg higher.

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