Tuesday, October 12, 2010

FOMC Minutes folled by Volatile Trading

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It was quite strong volume increase after the minutes of the FOMC meeting. Quiet trading at the morning has became a little bit volatile after 14:00 EST - swing up, down and up again. As a rule strong volume during the price rise (as we saw today afternoon) may push indexes down. Already on the lower time frame charts (1 bar = 1 minute, 1 bar = 5 min and 1 bar = 10 min) I may see some weak signals that would suggest a possibility of decline. However, by referring the higher time-frames 15-min charts (1 bar = 15 min), 30-min charts and especially hourly charts (1 bar = 1 hour) I may see that the positive sentiment is still strong. Based on this, I may expect to see some decline tomorrow at the morning. However, at this point it is difficult to say, in case it goes down whether it may grown into something stronger which would go beyond the morning trading .

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