Watch the R1 Levels in Any Down Trending Support Bounces

In early trading the markets are moving up. The DJIA, Nasdaq and Russell (RUT) are forming hammers and the S&P is forming a bullish harami. Remember the trend is down and these moves at this early stage are counter trend moves. Follow your trading rules as always. Some traders will lock in profits now and then look to re-enter the down trend of the stock/index they are trading when it hits resistance and begins to roll over. If price action stays below the R1 horizontal level of yesterday's large black candle we will know that buyers are not yet committed to a sustained rally from these levels. Ag-related stocks are rallying this morning look for potential support bounce opportunities in this group: POT, MOS, AGU, CF and MON X is forming a bullish harami in a bull flag in early trading. We'll have more posts this morning as our schedule is clear for most of the trading, so stay tuned and we'll let you know what we are seeing as the morning progresses...