Thursday, February 5, 2009

02.05.09 - Impressive Recovery Past R1

Today's recovery off of the opening lows was supported by an easy to interpret reversal in the AD and Cumulative Tick lines, making it a particularly nice trend trade. However, we did see some resistance at yesterday's highs, which was tipped off by the dotted red volume spike shown in today's chart. Such spikes often indicate a 'key' price level where significant supply is both offered and received. As such, the spikes often turn out to be either turning points or, minimally, pauses in trend.

As of now, it looks like we are shaking that off as we break back above resistance. Lastly, all leading sectors are in bullish alignment. Keep an eye on this going into the final hours.

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