I can hear the lyrics from The Clash ringing in my head this morning, in particular the third verse:
Should I stay or should I go now?
Should I stay or should I go now?
If I go there will be trouble
An’ if I stay it will be double
So come on and let me know…
The Clash: Should I Stay or Should I Go
Sounds a lot like the market, doesn’t it?
This morning we more or less knew that price would be in a position to retest recent support near 10300 on the Dow futures, but when price first breaks out of a triangle we should always be looking for “surprise” reversals. If the Dow regains the 10320 level we’ll be on the hunt (if not already) for a long entry; on the downside 10280–10285 offered considerable resistance in past weeks and is now the bigger picture support level unless proven otherwise and is therefore a likely next target for today if price starts to trend lower.
Dow 30 Futures before the open
Nasdaq 100, S&P 500, Dow 30 Futures – the 50% retracement level (highlighted) of the last major swing down is until proven otherwise key support for markets.
Provided price generally holds these levels then my plan is to trim stocks that are underperforming the market by a wide margin, and hold those that appear to remain in healthy upswings or up trends.
05.05.10 10:52 #