Markets Holding Near Even Early Monday

The broad indices are holding near Friday's close essentially unchanged this morning after the first hour of trading. The DJIA, S&P, Nasdaq and Russell have all made slightly higher lows so support is holding at this moment. There is not much of a rally with the DJIA and S&P barely positive and the Nasdaq and Russell slightly negative. There is no technical evidence at this moment that traders should expect anything other than trend continuation. The key to focus on with the indices this morning is the short term resistance of the R1 on Friday's large black candle. If price action stays below this level it should be characterized as price fluctuation. Of course, if the indices break support its more downside in the direction of the trend. Make sure you review Friday's post on the indices and identify the support and resistance levels on the chart. FSLR is experiencing a support bounce this morning in a classic bull flag bounce cutting through both the 30 and 50 DMA this morning. Watchlist Today's Early Morning Action: Moving Up: FSLR, X, CLF, SOHU, SCHN, IPI, DECK, MEE, BTU, RIMM, FWLT, USO, ESRX, STRA Moving Down: GS, MOS, POT, CF, AAPL, MER, MS, MA, AMZN, V, LEH, MON We'll post again within a couple of hours to see how the support and resistance levels are holding on the indices and what other chart action is occurring in our watchlist.