5 min Emini Nasdaq 100
Price gapped down today by a huge margin -> around 15 points.. Should we view this as a timely correction? Markets cannot keep moving up always anway... As day traders, we should be concerned about how we can capitalize on such movements.. When market gapped down and kept moving down.. I did not go in and I was unsure whether the gap will close or not..
There was divergence with my short-term MACD. notice that short-term MACD is moving up whereas price is moving down... this was another factor preventing me from shorting, I was waiting for a pull back to the Moving averages.. unfortunately, this only happened closed to the closing bell..
Fundamentals:
(RTTNews) - Stocks are down by substantial margins in mid-morning trading on Friday, as the markets have largely shrugged off continued improvements on the economic front in the U.S. as the European debt crisis remains a chief concern. The major averages are all firmly in negative territory, adding to yesterday's losses.
A short time ago, Reuters and the University of Michigan released their preliminary report on consumer sentiment in the month of May, showing that sentiment improved roughly in line with estimates compared to the previous month.
Reuters and the University of Michigan said that their consumer sentiment index rose to 73.3 in May from a final reading of 72.2 in April. Economists had been expecting the consumer sentiment index to increase to a reading of 73.5.
In other economic news released recently, the Commerce Department reported that business inventories increased by 0.4 percent in March following a 0.5 percent increase in February. The increase in inventories came in line with economist estimates.
Before the opening bell, the Commerce Department released a separate report showing that retail sales edged up by 0.4 percent in April following an upwardly revised 2.1 percent increase in March. Economists had expected retail sales to increase by 0.5 percent compared to the 1.6 percent growth originally reported for the previous month.
