Friday, August 19, 2011

8/19/11 Morning Prep / Analysis

Fundamentals: US futures to open sharply lower on continued economic / Euro zone fear.

Technicals: Our fast charts are showing initial signals of a long bias.

The initial technical signals to the long side will be monitored. I want to see how price reacts on the next pullback and if buyers step in with support, the long bias will be confirmed.

We always want to be VERY careful that the initial signal is not just a pull up / pullback on our medium term chart which will then continue in the original direction.

Here is our initial signal on the fastest chart:

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