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Day Trading Technical Analysis


Day trading Technical Analysis:         

This market is totally driven on this $700 billion bailout package.  Is the bailout plan completed or not that is the question and until this is agreed by both parties we will continue to have uncertainty in the markets. One thing to monitor is the credit markets with the Libor and the 3 Month  T bill continuing to widen which indicates the unwillingness of banks to lend money to each other which becomes a major warning sign.  Please keep in mind if they do agree on the bailout plan we could rally 50 S& P points.  Use extreme caution when trading the markets!


 Dow Industrials:      Support: 10,800 –  11,120         Resistance:  11,500 – 11,700

The Dow Industrials need to hold the September 18 low. 10,459   

S&P 500:  Trend line Support of 1195 – 1180-   Resistance at 1220 – 1254

S&P 500 is in a down trending channel and is bouncing within the channel.

Spy:  Support  116.53  – Resistance 123.01

Spiders are also in a down trending channel and is also bouncing with in the channel.

QQQQ  Support 40.19   Resistance 42.60

Q’S have been one of the weakest index.  This index is showing signs of breaking the low.

Iwm:  Support  67.77    Resistance 71.37

Iwm stil holding up rather well but is showing signs of breaking down.   

XLF:  Support 19.80  Resistance 22.50

Xlf  is now within the channel after the ban on financial stocks.  We wait to see what happens after the ban has been lifted.

Use extreme caution when trading.  The charts are all over the map so be patient and wait for a set up.

Quote of the day:

“The only real risk is the risk of thinking too  small.”

Frances Moore Lappe

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



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