Let's notice that on the way down this morning, Ford (F) violated a major trendline from March 2009 at 11.10, then sliced below its January-May support line at 10.60 and finally tested its rising 200-day MA at 10.12. The moving average held the onslaught and reversed F to the upside, initiating a powerful rally that so far has climbed back above all of the key technical supports violated during the first hour of trading.

This is impressive action, but the key will be today's close, which will be extremely constructive above 11.30, and nearly as constructive above 11.10 (March 2009 support line). Let's see how it all unfolds as the day progresses.

 

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