Wednesday, March 4, 2009

PreMarket Review 03/04/09



The overnight market has had a nice bounce, but, so far, it is only a 62% correction of yesterday's range. We are currently above the day session pivot of 699.25.



On the 1-minute chart, a good high probability trade is the first correction after the market reverses as indicated by trading above or below a previous pivot high or low. The 21-period EMA on a 1-minute chart usually indicates the limit of the correction. I usually like to see the 2-period SMA go slightly past the 10-period SMA on the $TICK chart.
Charles

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