TUESDAY'S MARKET WRAP-UP
Good day fellow traders!!! The market had an impressive session on Tuesday to follow-up on Monday's strong recovery off early premarket lows. The congestion we had our eye on heading into Tuesday morning did hold and broke higher early in the session, triggering a breakout from the 60-minute trading range. Although this did increase the risk that the breakout would not be as sustainable on the daily time frame as a move with additional rounding off at lows, the pace of the rally was strong enough to shift it dramatically compared to the selling that took place heading into June.
Dow Jones Industrial Average (Figure 1)
The intraday action on Tuesday was not as exciting on the 5 minute time frame as it was with the 15 minute breakout. The market didn't offer strong swings in price on the 2-5 minute charts to give daytraders strong continuation moves in the overall indices, although individual securities fared much better. Instead, the market just puttered along, steadily making new highs throughout the session and ending on a strong note with the Dow retesting its 100-day moving average resistance and the S&P 500 back at the upper end of the larger 120-minute trading range. As anticipated, the Nasdaq had the cleanest break on the upside.