Strong gains on the prior session following the announcement that the Feds announced they would inject as much as $200B into the financial sector by allowing institutions to put up risk mortgages as collateral to get access to treasury.
The futures market indicates a slightly higher open this morning but everyone seems cautious. From CNBC at 8:20am:
And here my trend table for today:
Only DOW charts today:
|The Dow clearly bounced back today. The candle is 2.5 times the length of the previous candles. We are still near the bottom of the range and will need a lot of more to really turn this up but it’s a good start. The next challenge will come near the 12,800 resistance level.
|The 15-minute chart traced a clear bull flag this morning. A long flag pole at the open, a lot of short covering going on. Consolidation right at the 12k level and the uptrend resumed after lunch. This chart makes me bullish for the open this morning morning.