Disappointing day as traders faded the morning gap-up with bad news after bad news. In addition Goldman pessimistic comment didn't help. 60m price momentum didn't have a chance as the morning gap is faded. Even though we have very light volume trading day, markets continued to sell off. Crowd sentiment can be very unreasonably lop-sided as many likes to follow the crowd.
On a positive note, we have VST positive divergences on 60m, so, will continue to pay close attention to noted supports.
Market Comment Update as of Nov 7, 2008 ~ Markets are trading at pivotal supports on all timeframes as noted earlier shown below. I did not hear any good news during the weekend. Major markets, commodity, gold, oil, etc are all trading near at pivotal supports, so, all will be paying close attention to support area.
QQQQ 30.50 +/-
8SPX 900 +/-
DOW 8600 +/-
Nasdaq 1600 +/-
I noted "rising wedge" formations prior to the 10%/2day sell-off. We now have potential "inverted H&S" formation with "symmetrical triangle" formations which could be leading to Inv H&S.
Breaking out from "symmetrical triangle" patterns to upside is an initial signal to a continuation of upside momentum as 60m patterns are showing.
Good luck with trading
No comments:
Post a Comment