Sunday, March 7, 2010

Friday, March 5th Review - NFP + Range Expansion!

Per my post in Thursday review, "range contraction leads to range expansion". We had just that from the begiining as overnight trading saw us breaking out above the top of the 3 day trading range we were in. NFP employment numbers came out and still the market was able to hold its overnight lows (very bullish). It was off to the races and up trend day was heavily in the cards.

Best trade of the day would have been buying the 1126's as market pulled back to test the previous trading range high. We were able to hold the 100% range extension resistance for most of the day, however we had consumer credit report come out late in the day, it was a very positive report which continued to fuel the fire for the bulls, and we saw more responsive buying taking us back into the range we were in, in January.

Once again, this market will more than likely be trading 1230's by summer time.

I will post some resistance levels and an update on the longer time-frame charts soon!