We are in an extemely resilient market right now. The stock market is willing to make strong runs to the upside, but does not seem to be as agressive selling off. Now that we are through earnings, is that strong direction over? Looking at a daily chart, there is an awful lot of room to move back down towards the trend support line. The last 3 Days are telling, as even though the market moved higher today, it was unable to close above the open from 3 days ago. The Diamonds look to be starting to develop a new Down Trend. I don't know that the market is through rallying longer term...but I'm looking for a pullback to somewhere around the 9,800 level.
RIMM $57.20 target achieved
The big news on the day wasn’t that the FOMC left rates unchanged. That was expected. It was the language within the statement itself that caught traders’ attention. Specifically, the FOMC foresees a continuation in the “exceptionally low levels of the fed funds rate for an extended period.” While this statement looks innocent enough on the surface, this single sentence… 12 little words… erased what was mounting to be exceptional gains on Wall Street. Within two blinks of the eye 130 positive DOW points vanished. Equity traders were hoping the FOMC statement would indicate that those “green shoots” were growing up into fruit bearing plants, however, the FOMC basically said there will not be fruit “for an extended period of time.” Equities sank… but risk currencies closed around their highs??? How is that??? Has the dollar become that unattractive???
EUR/USD: Support around 1.4700, Resistance around 1.4900
GBP/USD: Support around 1.6400, Resistance around 1.6600
USD/JPY: Maybe the pair to watch as we approach the end of the wedge… Support: 90.50, Resistance: 91.20
Thanks,
Derek Siek…
The big news on the day wasn’t that the FOMC left rates unchanged. That was expected. It was the language within the statement itself that caught traders’ attention. Specifically, the FOMC foresees a continuation in the “exceptionally low levels of the fed funds rate for an extended period.” While this statement looks innocent enough on the surface, this single sentence… 12 little words… erased what was mounting to be exceptional gains on Wall Street. Within two blinks of the eye 130 positive DOW points vanished. Equity traders were hoping the FOMC statement would indicate that those “green shoots” were growing up into fruit bearing plants, however, the FOMC basically said there will not be fruit “for an extended period of time.” Equities sank… but risk currencies closed around their highs??? How is that??? Has the dollar become that unattractive???
EUR/USD: Support around 1.4700, Resistance around 1.4900
GBP/USD: Support around 1.6400, Resistance around 1.6600
USD/JPY: Maybe the pair to watch as we approach the end of the wedge… Support: 90.50, Resistance: 91.20
Thanks,
Derek Siek…
RIMM at a critical level…
Failure to hold this area could put the 10/30 – 10/31 gap back into play…
Potentially targeting $57.20 in the short term…
Looking at a 60 minute chart brought you to by LightWave...
DOW: 9771 down 17
NASDAQ: 2057 up 8
SP 500: 1045 up 2
EUR/USD: 1.4730 down .0043
USD/JPY: 90.31 up .05
GBP/USD: 1.6439 up .0034
Risk currencies were trading around session lows at the opening bell in New York when a wave of M&A news spurred a new bout of risk appetite. Warren Buffett (a.k.a. The Oracle) agrees to buy Burlington Northern Santa Fe (BNI) for $100.00 a share and tool maker Stanely Works agreed to acquire Black and Decker (BDK) in a $3.5 billion dollar stock deal. M&A (mergers and acquisitions) news and rising commodity prices helped bolster risk keeping U.S. Equities nearly flat and pushing EUR, GBP, AUD and others off of session lows.
$DJI: Wedge on the daily. Trend line support comes in around today’s low of 9700. First level of resistance around 9850, then at the top of the wedge a smidge above 9900.
$COMPQ: Wedge on the daily. Trend line support comes in around today’s lows 2030. Looks like we closed around resistance. Tech led the rally, could lead the pullback.
$SPX: Wedge on the daily. Trend line support comes in around today’s low of about 1030. Resistance eyed 1050 – 1060 area.
EUR/USD: In a bit of a channel. Today’s dip below 1.4680 seemed like a “brear trap” to me. Looks like the channel is back in play. Support 1.4680ish and resistance 1.4800 and then 1.4850.
GBP/USD: Trading in the mild of a wedge on the daily. Support eyed at 1.6320ish. Resistance a smidge above 1.6500. Wish I could be more help here but this one has been all over the place.
USD/JPY: Wedge on the daily. Support comes in around the 90, beyond that the low end of the wedge 89.20ish. Resistance a touch above 91 and more around 91.60
For more Market Wraps and Trading Alerts, make sure you check out http://www.wizetradealerts.com?cid=07013
Thanks,
Derek Siek...
RIMM testing Trend line resistance (Chart brought to you by LightWave)
AUD/CAD has a possible "head and shoulders" pattern on the daily chart:
