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Day TradingTechnical Analysis

12/05/2008   

Day trading Technical Analysis: 

Last week there was no post due to the Thanksgiving Holiday I hope everyone enjoyed their time with family and friends.

Today is the all important job number which will be released at 8:30 am. There looking for -300,000  with consensus at -325,000.  The numbers are expected to be horrible and will be a market mover. 

As we mentioned on the last news letter   keep an eye on is the US Dollar and bonds.  It has been a flight to safety.  Once the dollar puts in a top then the stock market and commodities should put in an intermediate bottom

The Dow, S&P and the Nasdaq are all in a downtrend with the downtrend line being resistance. 

Below are key support and resistance to look for.

 Dow Industrials:      Support: 8140 –   Resistance: 8500 Downtrend line.

Dow has tested the downtrend line and is acting as key resistance.  It needs to take out 8500

for a possible short term counter trend rally.

S&P 500:   Support 815 – Resistance at 845- 875-900

S&P has also tested the downtrend line with key resistance being 845. Short term support would be Monday’s lows of 815.

Spy:  Support 82 – Resistance 87.5

Spy has also tested the downtrend line with resistance at 87.50. It also needs to hold Monday’s low of 81.86

 QQQQ Support 2 7   Resistance 28.50

Q’s have been the stronger of the indexes and is also testing the downtrend line.  It also needs to hold support of Mondays low otherwise we could see a test of the November low’s.

 

Quote of the day: “Remember that stocks are never too high for you to begin buying or too low to begin selling”

Jesse Livermore

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

 http://www.keystonetradinggroup.com/

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