Monday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

Nice SMA test this morning on the spoos – however I have to concede that it’s only soft support since it has only recently been observed. IMNSHO a much better setup is presenting itself on the Dow futures:

Here I’m long with a stop below 15511 – the 8:00am EST low. If it fails I won’t be short as I am not yet interested in short positions.

UPDATE: That setup got stopped out and we dipped into 1750. Reason why a short trade here is difficult to manage is that the 100-hour is advancing from below, most likely offering support.

The dynamics in equities are now difficult to assess – we are in a limbo range between the two SMAs and the expectation of the 100-hour support line offers only little profit potential with significant risk given the participation of the past few days. I would not be long here until at least the 25-hour has been re-taken. Confirmation of early long positions would be at the hourly NLBL at 1758.5.

More below for the subs – please step into my lair:

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Cheers,