DOW and E-mini Daily chartsUS markets range bound within the Weekly channels, and coming into March Contract expiry this Thursday.
Yesterday's price action in the overall mayhem of the Bear Sterns collapse was a sign that in the short-term the worse could be over.
There is no pattern that suggests the worse is over, that will be confirmed with the break of the 3-day highs and trading back above the Weekly 50% level, but the resulting UP day in a market that was saturated with bad news can't be ignored.
DOW and E-mini intraday....
Risk level in US markets are shown above (red line), and Support is a critical level on Tuesday if it gets down that far today.
Currently US markets are pusing upwards, with the DOW moving up from the 5-day 50% level, if this continues higher before the market opens, then the Weekly 50% levels are viewed as higher resistance in early trading and I'd would like the market to come back down and test support.
If the markets are hovering around RISK when the markets open, then the view is that price is rising up into the Weekly 50% level.... before deciding on whether US markets continue to rise higher into Thursday.
Basically use the levels above for intra-day trading. There is no major set-up for today.
Bearish pattern is a break of support.
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