The picture didn't change much on Thursday as the market waited for the Nonfarm Payroll figures. We now have them and as per Wednesday's commentary the markets have pulled back. Please keep all eyes on Dow 10,000 and Euro 120 as these numbers will be pivotal in weeks to come over the short term as we'll expect prices to move higher if the price action bases as we would like it to.
The Dow Jones must decide which channel the market is to make! This is a current four hour chart. 10000 is the pivotal mark denoted by the blue line. We have just dipped below and regained it. It is not as simple as that though. We could snap it again and start a deeper move lower for next week in which the price will be respecting the wider red channel and the yellow lower price prediction would be applicable. On the other hand the market could easily hold 10000 and start to recover today/Monday in which we could visit yesterday's highs again next week in which if the market takes them out then it will likely test them again and take off higher. The resistance as mentioned was 10258 - 10352 and that is the failure and we got the pullback as we expected.
Now we will strike on 1 of 2 scenarios.
- A deeper pullback to new lows for 2010 could occur
- Or bounce time and out of resistance and back to highs of 2010
Of course the Euro will be likely to produce such moves and all eyes are onEuro 120 whilst 10000 for the Dow is crucial.
This was the mentioned problem level for the Dow: 10258 - 10352 andthankfully members acted to it!
We don't marry any unbiased projections as we are ready to react to price! At trading market signals the technical picture changes just as the scenarios on the road change whilst a driver is driving a car. A driver must adjust to various scenarios and a trader must also remain technically unbiased so that optimum results can be achieved. In fairness the price on the side will always simply be a number. Don't get emotionally attached as to what the value will be as the primary and sole aim should be to trade the markets. If you want to trade and learn the best way to strike the markets then come and join us. The Dow Jones hitting 9000 or 11,000 has no significant bearing on being able to obtain gains from the market as if the trend changes, so dowe.
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