NQ (NDX future) resistance is 50% 2007 at 1797.75. For gold, weekly R1 is at 633.10 and has pretty much been hit. Everyone is lining up and placing their bets, but the main thrust is a belief that the Feds will soften their language and announce an upcoming cut. Anything less will produce a sell-off.
For bulls, the all clear will only occur when the NYSE regains its 50 DMA at 9187.30. Otherwise, the bears will take the reins back.
Speaking of manipulation, the entire rally yesterday was on low volume and meant to hit more shorts and pull in some easy money. The big guys were not buying. They never gamble on FOMC events.
We are in a tight range now, with NQ support at 20 DMA (1783.25) and resistance at previous March highs, 1787.75. Note that I am often quoting NQ since NDX is the leading indicator of this rally. Bulls will make their stand at 1782/1783 as long as it holds. Fear will creep in below.
Note that QM (crude future) is trying to hold its 50 DMA at 59.30. We are now trading the May contract.
For bulls, the all clear will only occur when the NYSE regains its 50 DMA at 9187.30. Otherwise, the bears will take the reins back.
Speaking of manipulation, the entire rally yesterday was on low volume and meant to hit more shorts and pull in some easy money. The big guys were not buying. They never gamble on FOMC events.
We are in a tight range now, with NQ support at 20 DMA (1783.25) and resistance at previous March highs, 1787.75. Note that I am often quoting NQ since NDX is the leading indicator of this rally. Bulls will make their stand at 1782/1783 as long as it holds. Fear will creep in below.
Note that QM (crude future) is trying to hold its 50 DMA at 59.30. We are now trading the May contract.
This entry was posted
on Wednesday, March 21, 2007 at 3/21/2007 09:26:00 AM.
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