Thursday, February 10, 2011

Failed Breakdown Thursday

Gap-opened below trading range low on Thursday failed, and the market promptly reversed back up through the broken trading range low, through FT Pivot to close the gap and test the upper trading range.

Nasdaq (NQ) failed to breakout above the range high. Similar price action for ES (e-mini S&P 500)

For Friday, the market either breakout above the high and trend up all day (short-covering) as the short sellers panic and cover ahead of the weekend, or, the market could continue to consolidate and test the range low again, or break below it.

Either way, I will use 2360 again for my key Line-in-the-Sand, 
2350  as trading range support, and 
2365 as trading range resistance