Well, let's see....
As always, the S&P first. The light red lines are the resistances which got taken out today. Well done bulls! But wait, before we let the champagne start bubbling and the good times rolling, see what's coming up! Yes indeed, its the 50 day MA! And it strengthened by being a resistance region from November-December. So, the 1113 regions assumes quite a significance going into tomorrow. If its a clean break, then we can party like the summer of 09. And what about the volume?? Well, it depends on whether you see the glass half full or half empty, or in this case whether you are long and short. The longs will be pleased that the volume was greater than yesterday whereas the shorts will hang on to the fact that the volume is still quite low compared to last week when we went down.
Similar story at the NASDAQ except that the MA(50) seems a little bit further and the volume was low compared to even yesterday.
Lets also have a look a the dollar ETF today, since it looks like dollar is again pretty much deciding the course of the markets these days. Well, it turns out these are interesting times for the dollar indeed. As indicated in the chart, it is in between a tight range of support and resistance - 23.2 and 23.35. Watch out for a break on either side for what I believe will be a very good indicator of where the market will go from here. As you readers might have already noticed, the volume pattern looks extremely bullish - not a good sign for the overall markets.
Personally speaking, I didn't get time to follow the markets at all today. It was one of those days at work. Oh well! I still had a fairly decent day thanks to NEP, my only position, which was up almost 10% today.
I will be back in a little while with some charts worth keeping an eye on for tomorrow. So, to summarize - keep an eye on the 50 day MAs and let the dollar be your guide.
Take care and good luck trading!
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