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Market Comments for February 23, 2015

 

 

On Friday the market open neutral and initially found some weakness as it traded lower during the first 30 minutes of the day. However at the 10.00 reversal time it found support where it was marked on Friday’s chart which set the low for the day. The market had a strong rally and stalled at minor resistance from the prior day. It then consolidated sideways in a tight range all through lunch and then had a very strong rally to close out the day leaving a big green bar on the daily chart. The SPY was similar.

For today there is a nice support area at “2”. While there is technically no resistance, the little tail at “1” is marked with a red line because of the extension that is seen both on the daily chart and hourly chart. Extension alone is not a reason to be cautious, but when it occurs on both the daily chart and hourly chart the odds of a narrow day or a red day are greatly increased.