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Day Trading Technical Analysis

10/3/2008     

Day trading Technical Analysis:         

A week later and it’s the same old story!  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. Today we should have a decision on the bailout package and then we need to see how the market reacts.  Earnings season is upon us and this will be the main focus on the markets moving forward.  Use extreme caution when trading the markets!

 Dow Industrials:   Support: 9750 – 10,000  Resistance: 10750 –  11,000

The Dow Industrials did hold the September lows as indicated last week. If we do close below the lows our next level would be 10,000.    

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

S&P 500 is at the bottom of the down trending channel. If breached our next level would be

1080.

Spy:  Support  105  – Resistance 115 – 117.79

Spiders are also at the bottom of the down trending channel. Key level was taken out at 117.79.

QQQQ  Support 27.61     Resistance 38.87- 42.60

Q’S  did break the low as indicated and is now holding critical support of 36.12.

Our next level of support is 27.61.

Iwm:  Support  60.73    Resistance  68.04   71.37

Iwm  broke key support of 67.77 .  Our next target is 60.73     

XLF:  Support 19.80  Resistance 22.50

Xlf  held  with in the channel.  Short selling ban has been extended.  We shall see what happens after the ban is lifted. Trading bank stocks are a risky game right now.  There is to much headline risk at this point.

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: “To be successful, the first thing to do is fall in love with your work”

Sister Mary Lauretta

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

 http://www.keystonetradinggroup.com/

 

 

 

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