- Momentum on some daily indicators has now turned negative, but we'll have to wait for tomorrow's close to get a better reading. We also broke through the 7 day average, but the 90 day average has acted as support in the 3960s.
- Looking at the ascending trendline, we are now just living off the lower boundary. I am going to be playing cautiously at the onset unless we open drastically lower.
- We are in a long ambush area from the previous "touch" on this lower boundary, which occured in the 3870s.
My bias for tomorrow is to look for a short entry: I have circled the 4030s to 4050s as an area into which to look for weakness; it's an ambush short area from today's highs to the lows, and we have 4040 as a resistance. However, I want to see where and how we open tomorrow morning. I could enter the market at a lower level if necessary should resistances be strong or else alter my plan.
Should we break above the 4040s with strength, I might start looking for a long entry.
Again, I am quite weary and cautious on the fact that we are right on the edge of that ascending trendline.
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