This morning, the market’s bearish sentiment seemed to fade after Obama’s victory to sign that small business bill. But is this rally going to hold?
I am going to post my daytrading chart for the first time. I use the Dow Jones Industrials 5 min chart to determine whether the rally is going to hold.
Today’s action shows that bulls and bears are fighting each other. We saw in the early morning, bulls were trying to make the shorters cover their positions, and they succeeded to bring the market up to 10450. Then bears took over again, and then bulls took it again. Now the market is at 10450 again. Bears will definitely try once more.
Notice the higher volume at that point, there is definitely strong resistance there. And will this job bill be able to break it? Honestly, with charts alone, we wouldn’t know. However, we can turn to metal prices to see the macro market.
Metal prices are heading down. Aluminum is most probably being shorted to its support level at 90cts.
So I am guessing that the broader market, will also sink from here.
Short FCX again, $79.2.
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