Thursday, July 22, 2010

Bullish stance for now until proven otherwise

As the market only paused for a few minutes at the key trendline for the triangle case I put in this morning's post, that scenario was quickly put to rest as the market burst higher to key resistance at 1096. Based, on the recent market action, we must assume a bullish stance preference for the market until price is able to break below key areas and resume the bear.

So, here is the 60 min chart. I know it is busy, but it has lots of key information on it. Mainly:

- Key resistance at 1096 and 1106 (not only an hourly pivot resistance line, but it is also the 786 retracement of the last move down and very important if the market is going to keep a series of lower highs / lower lows). If buyers can't get past this area, then the bear may resume, so I'll be watching closely for signs of significant selling.
- Key support is at 1083 (for a subminuette wave 2). Critical support at 1070 to keep the market in an uptrend.
- We have a subminuette wave 3 target coming in at the 1131 area.
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