Morning Review - 08/27/08

I was having doubts about the market turning bullish in the first 30 minutes of trading, but it finally did after 1000 ET. The market turned slightly bearish at 1047 ET as the market approached the European close.

Volume in the US markets will get lower and lower in the next few days as traders take one last summer vacation as we approach Labor Day on Monday.

Charles

Market Data - 08/27/08

Charles

Key Pivot Points

If the market reverses, it is typically near some key pivot point, such as the previous day's high or low, the 0930 ET open or the morning's high or low. There are many more, but these are the major ones. If there is to be a big move in the market, it is usually after a test of a key pivot point.

A change from red to yellow or green to yellow, which is an indication of a reversal in momentum, is more significant after a test of a key pivot point in the market.

The key reversals yesterday were a test of the previous day's low, a test of the 50% correction of the previous day's range, and a test of the morning low.

Charles

Morning Review - 08/26/08

After testing yesterday's low, the market has given us a 50 % correction of yesterday's range. The market now awaits the FOMC Meeting Minutes at 1400 ET.

Charles

German Economic Woes and the Dollar

The Dollar is strengthening against the Euro due to concerns about possible trouble with the German economy. Crude and Natural Gas prices are currently more concerned about the dollar than Gustav.

Charles

Gustav

Five day forecastt of Gustav and more.

Charles

Open - Low, High - Open and Range Analysis

On Friday, the High - Open difference weakened while the Open - Low difference stayed below 5 points for two days. As has happened in the recent past, this leads to a down day.

Charles