Friday, 15th March 2013. The index futures is likely heading down for some mild retracement after it rallied to weekly high around 1,668.50 level last Monday this week. Other news to follow.
"- U.S. stocks advanced Thursday, lifting the S&P 500 index to within 2 points of its all-time closing high, as investors embraced the latest confirmation of an expanding economy. Stretching gains into a 10th consecutive session, its longest streak in 16 years, the Dow Jones Industrial AverageDJIA +0.58% climbed 83.86 points, or 0.6%, to 14,539.14, leaving it with another record close for a eighth consecutive session. The S&P 500 index SPX +0.56% rose 8.71 points, or 0.6%, to 1,563.23, leaving it less than 2 points shy of its record close set in October 2007. Energy and technology were the top performers among the index’s 10 major industry groups, while health-care companies weighed.
The Nasdaq Composite Index COMP +0.43% advanced 13.81 points, or 0.4%, to 3,258.93."
"- Oil futures finished higher Thursday, with a decline in the U.S. dollar DXY +0.01% and encouraging weekly labor-market data supporting gains. Crude oil for delivery in April CLJ3 +0.24% rose 51 cents, or 0.6%, at $93.03 a barrel, the highest settlement for a front-month crude contract since Feb. "
"-May Soybeans finished down 8 at 1439, 11 off the high and 10 up from the low. July Soybeans closed down 5 1/2 at 1419 1/2. This was 9 3/4 up from the low and 9 1/4 off the high.
FKLI- Bulls Are Taking Some Breather.
Following on previous week upside break out that made the index futures went up to 1,668.50 level, it is having some mild retracement recently. Bulls are taking some breather at the moment, giving up gains quickly. But thing might get out of hand if the March breach below today psychological support around 1,630 level. If this even materialize, we are likely expecting some swift correction that might jeopardize this positive momentum. Market can wildly swing unexpectedly as we still need to face political uncertainty prior to the general election. In other words, high volatility will be the main headlines for the market to move right now. Technically, this downside would turn out to be a deep correction if the spot month contract could bounce back above 1,640 level today and traders can expect some decent gains the day or next week. But if the market did not manage to recover above that level and went down below 1,630 level, then we are likely to see more downside potential for the March contract. This event will also cause lower high area to formed around 1,668.50 level and also major resistance level. For today, pivot support for the March contract is located around 1,630 while resistance is pegged at 1,649.
Daily Pivot Point
R2= 1658
R1= 1649
S1= 1635
S2= 1630
FCPO- Dead Cat Bounce On Last Moment ?
Dead cat had to bounce if it is dropped too high off the ground, but maybe yesterday Bulls attempt to recover might be overdone as most of the losses was recovered right before the market close. Most of the Short covering has made the benchmark May went up from 2,380 to 2,401 15 minutes before the market close. The only explanation for this frantic movement might due to previous short term support or double bottom around 2,366 level as shown on the hourly chart above. Most traders would call it coincidence but when it is recorded and it would be a coincidence statically. If not all, almost every significant support and resistance that took more than two sessions to build will likely serve as important pivot level. Traders can look forward for some significant market event when the price approach these levels. Either it would break or bounce from this level, there is so much opportunity to take advantage from support and resistance level. Technically, market weakness still remain when the benchmark May gap down yesterday, signifies that the Sellers are still eager to go on Shorting. Safe call to made on short term perspective when the benchmark May manage to recovered above 2,400 level yesterday would be sideways ranging from 2,412 to 2,366 today. However, traders can expect more correction to take place if the benchmark May manage to breach below 2,366 level. Market is remain Bearish on medium term perspective as most recovery will likely attract more Selling pressure.
P/s: Made some correction to the trading range today, same sideways market is expected for today overall market outlook. Short and medium term technical perspective remain weak and the benchmark May is susceptible for further weakness as it has created a new low around 2,360 yesterday.
Daily Pivot Point
R2= 2425
R1= 2412
S1= 2375
S2= 2351
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.
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