Wednesday’s Trading Action: Bounce Overdue?

Today (Wednesday) was an interesting day because I had a to make some difficult decisions as to what I should hold going into the close. However, going into tomorrow, it wouldn’t be a difficult day to identify where you would want/need to enter and exit. Today’s low (bottom turquoise line) will act as tomorrow’s support, if needed. If this breaks, keep in mind that there are no short-term support levels remaining.

You can also see that yesterday’s close (the faint black line near the middle) also acted as support and resistance. We’ve broken throughout in every index. You can see that the upper turquoise line is resistance. Once we break through that level, this rally will persist for good time. We are extremely overdue for a bounce. Tonight, the short-ban ends and this will bring back balance to the markets. However, in order for those shorts who might consider shorting tomorrow…the market must first drop before they even think about covering! I’m not sure how this will all work out, but we’ll see. The important thing is to note all major areas for all three indices below:

DJIA (^DJI)

S&P 500 ($SPX)

NASDAQ (^IXIC)

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