Strong move up this morning from globex. SP 500 is traded above the 618 retracement area of 1081 and has traded up into the next gap area at 1087.50 area.
There will be a large gap up open this morning so traders want to first watch how price reacts to the gap open. This means to see if price retraces back into the gap, does it close the gap, go through it or does price hold and move higher. Large gaps can precede trend moves and the trend can be either direction from the gap.
If prices move higher from here the 786 retracement is at 1101.50. This area was an area the market had a large break to the downside and strong move down.
It’s been a strong move up so any first deeper corrections down should find support.
Have a great trading day.
Leslie
www.tradingliveonline.com

This entry was posted on Tuesday, July 13th, 2010 at 9:20 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.