The Stocks & Commodity Technical trading Outlook Part I
If you were following my Rant and Rave blog articles at InTheMoneyStocks.com, this rally was accurately called. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $129.45, +1.03 (+0.80%). The reasons to expect a rally today were simple. First, options expiration is next week. This may not seem significant but it is.
USD/JPY is coming very close of breaking above the 82.00 level. Intraday bias remains on the downside, as long as the 82.78 minor resistance line is not broken. On the upside, if the 82.78 minor resistance line is broken it will change the sentiment to the bullish side and target the 85.50 major resistance line.
The major stock market indexes have all rallied higher after an early decline around the 12:00 pm EST. Many traders and investors are looking forward to the government job report on Friday. This morning before the opening bell APD released their payroll report and the report showed an increase of 217,000 new jobs added to the economy. The past two payroll reports by the U.S.
The markets are having their second straight bounce day on the back of light volume and continued semi calm in the Middle East and Northern Africa. Libya continues to be in a civil war but overnight China began putting pressure on Moammar Gadhafi to step down. This helped drop oil back to the flat line which pushed the futures higher.
Trying to Find a Bounce? Here's What you need to know!
The next three 6-month charts show several important technical aspects of today’s action. With the exception of the NASDAQ (the best performer), both the DJIA and SPX formed doji on massive volume. The doji are long-legged, signifying extreme indecision (confirmed by the 1,000 point range in the DJIA). Notice how volume it “back to normal” levels.