Tough day as various levels of support were taken out. NQ sliced through weekly S1 like butter in the closing minutes, but is recuperating after hours and ES found support at that level. As I commented last night, we might find a base at weekly S1 and get into a trading range, but if NQ can't regain it soon, all bets are off. To say that the selling is overdone is to put it mildly. Chip forecasts have been raised (see link) but no one cares. Bears are in control. Keep in mind that we have end of month games going on and the real awaited piece of economic news is the jobs report on Friday. For now, conservative traders should wait for a close above the 10 day ema to go long, but the more adventurous type might start nibbling again on an overnight drop. Watch ES 1258.25 key support now.
This entry was posted
on Tuesday, May 30, 2006 at 7:56 PM.
