Today's spike low at 12.34 in Ford (F) looked and felt like near-term panic liquidation, which sometimes creates meaningful buying conditions. Thus far, since the opening hour of trading, such a scenario appears to be developing -- that F completed a significant correction from its 3/18 high at 14.54 into the 12.34 low. Whether or not F will climb vertically for one to three sessions or establish a base-like pattern between 13.00 and 12.50 remains to be seen. In either case, my near-term technical work argues strongly that "something ended on the downside today," which when overlayed on the larger, 18-month bull-market in Ford, leads me to want to remain and add to long positions. Next near-term key resistance area is 12.90/95.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.