Tuesday, May 7, 2013

Pre-Market Looks Robust

Here we have the last thirty days on a one hour interval. If you'll notice, the Double Stochastic is in the extremely positive region, with an Ergodic Oscillator above zero. If price is able to pull back to the Double Moving Averages (60 SMA, 110 EMA), and fail to breach the zero line of the Ergodic, we may see a continued breakout of the Index, or at least a retest of current levels. The overnight session has been almost completely flat-lined. Keep in mind though, volume was scarce yesterday, so you may want to add a moving average of volume so you can keep an eye on its' levels. You don't want to get left holding the bag up here. I personally am sitting on the sidelines on any up moves, but I will scalp any retracements or reversals lower using Woodie's CCI on an Average True Range of today as the interval.