Tuesday, January 10, 2012

Setups for January 10, 2012

Pre-market equity futures are solidly in the green for U.S. indices.  Alcoa started off the earnings season yesterday releasing results after the close with so-so results.  AA posted a loss of $.03/share, but revenues were slightly above analyst forecasts. 

The S&P 500 has been trading in a very tight range since the initial big move on the first trading of the year.  This tight price action is a welcome change from the hugely volatile trading we saw in 2011, particularly in the latter half of the year.   

We could see a resolution to the standoff in many charts today if pre-market gains are extended and maintained throughout today's trading.

Here a few setups for today's trading:  ALWAYS use stops to protect you from big losses.







Here's a previous high, tight flag pattern to serve as a model.




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