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Day trading techincal Analysis

Day trading Technical Analysis:         

Today were going to discuss support and resistance for several key indices.  The longer term trend is down.  We are below the 200 ma in all major indices. What we are experiencing is a counter trend rally in a bear market.  We continue to receive weak economic data.  Thursday job report was no different and shows the economy continues to lose jobs.

 Dow Industrials:      Support: 11,400       Resistance: 11,700

The Dow Industrials made a short term bottom on July 15th of 10828 and we continue to rally of those lows.  For the Dow to continue this rally we need a close above 11,717 which is the weekly 200ma.  The Dow has been above this level since 1983 which is significant.

The Dow is now forming an ascending triangle and is in a consolidation phase. Watch for a break in either direction. 

S&P 500:  Trend line Support of 1255   Resistance at 1291 1320 1350

S&P500 is also in a consolation phase and is also forming an ascending triangle.  We also have a declining 50ma.

Spy:  Support 125 Resistance 129

Spiders also have a declining 50ma with the longer trend being down.

QQQQ Support 46 Resistance 47.29

Q’S have been in a parallel channel for over a month 44 to 46   and had finally closed above resistance which now support of 46.  New resistance would 47.29.

Iwm:  Support 70   resistance 72.50

Iwm has recently been holding up rather well and just recently put in a short term high of 72.66 It is above the 50 ma but below the 200ma.  This looks like to be a failed rally attempt and is looking likely to sucome to selling pressure.

XLF:  Support 19.80 Resistance 19.80

The XLF had a massive rally off the lows and looks like it as well is consolidating. It has just put a double top and is now below the 50ma and is sitting on the 20ma.  A break  below would test the support area of 19.80   Be aware the sector has large amounts of headline risk with bad news coming out of the banks and the fed intervening trying to push this sector higher.

Keep in mind the trend is your friend.  Have a great day and weekend!

 Keystone tech trader…


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