Wednesday, May 25, 2011

Trade Guideline for Thursday

As anticipated Wednesday was a reversal day, with the lows made in the overnight Globex session. I will use 2310 as key Line in the Sand for Thursday.
  • Above 2310 I will look for a second up-day, targeting 2330 or 2340
  • Below 2310 implies the market is ready to take out the low made during Tuesday night globex session. If so, there is a good possibility of a fast liquidation decline as stop-loss for the longs gets hit, possible downside targets are 2365, then 2340