Christmas Rally Daily Chart bulls in control
Christmas Rally for the past two days as the Market rallies and there could be a chance for good bonuses.
Traders broke through the resistance at 1426.25 and gapped up to 1428 and never looked back. This week we have seen very low volume. As you can see there is price divergence and volume inequality on these moves up showing weakness on the buyers side.
The Christmas Rally has historically been in the first full week of trading.
The first two weeks of December has been very consolidated with one move up and then this continuation move that started on Monday. With a move of 31 points controlled by buyers we could see a continuation of this move to 1450 to a swing high move of 1458. This is on low volume again which could prove to be volatile as there is not a large ask if the buyers do step in.
This is also Options Expiration week. Watch for some volatility going into Thursday and Friday as the dealers/traders adjust their positions and decide to hold into the holiday and into the New Year.
Bonds are the ones adding volatility to the Christmas Rally and pushing markets up on their way down.
The Christmas Rally got it’s kick off from the volatility in bonds with a push down to the 200MA. Today we say seller’s push down the Gap up from the open and come in with strength into the finish with a close down at the 200 MA.
If sellers continue with the momentum they carried into the close we could see a test to the first target around 145″00 and a further move to the next support at the previous swing low.
I again want to stress that this is very volatile and that if you are trading with out stops you can easily get over extended. Don’t trade this unless you have experience and understand proper risk sizing for your trades and account size.
Our volume spike up again for trade today so we might see a pull back tomorrow as seller’s strength could diminish. If not, watch pre market futures to see where the gaps lie and if it is down on the S&P500 emini futures pre market we could see these gap up again.
The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.
Disclaimer: day trading is high risk, do your own work : The efficacy of both technical analysis and fundamental analysis is disputed by efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in day trading. This applies to Christmas Rally and options expiration also.
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