Market Analysis for Tuesday

Friday did some technical damage to the market, the one hour chart above showing the last 20 day trading sessions has been trading in a nice price channel that was finally broken on Friday. Possible new bear channel could potentially be forming. Looks like the market is currently back testing this broken channel. Bears have a good short setup here with the 50% fib retrace as confluence.

Price levels to watch for:

Short Setups

1137. 50 – Channel trend line resistance, and 50% fib retracement level

1139.75 – 61% Retrace

1142.50 – 76% Retrace

Long Setups

1127 – 1128.50

1124

1118

Open Gaps

12-18-09 – 1097.75

12-21-09 – 1107.75

12-31-09 – 1110.75

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