Thursday, December 9, 2010

Short term traders,

 There's a negative leading divergence, but the earlier positive divergence looks big enough to support some further gains, unless the EUR/USD trade is turning south or some other fundamentals get in the day.

Watching a 10/22 moving average on a 5 min chart can give you a good idea of where the market is headed short term. The pullback has been deep, but as long as it can bounce off the blue 22 bar moving average, and make a new high, it has a chance to add to the intraday upside.

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