Wednesday, February 18, 2009

Whippy Wednesday

Wednesday we saw a early selloff bottom at 778 and then we rallied into the 790s before coming back down to about 785. It seems like the market is pausing for a potential fakeout bounce or just marking time before the next swing low.

Gold was working again and the dollar as well. The dollar index is getting up to big resistance at the 89 level. Expect for some shake and bake action in the currencies here pretty soon. The dollar will either breakout of this area higher and the Euro head lower or the dollar makes a double top and rolls over. If I had to guess I would say the dollar pops its head above 89-90 and then pulls back.

As for the ES futures for Thursday the pivot is at 786.25 and we are a bit below that after hours. the pivot is usually my line in the sand for the intraday action and its bias. I really am not looking for much upside trading right now but if we get over that pivot then you gotta be ready for some short covering at least. Below the pivot and I think we head down to test the 767-770 area. Options ex friday so be ready for some choppy trading.

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