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Day Trading Technical Analysis


Day trading Technical Analysis: 

The markets were range bound most of the day until the last three hours when selling accelerated.  After all said and done the Dow and the S&P lost 2.5%. Futures are down big this morning.  Important thing to note for is the gap down in the morning will buyers come in and mark the low of the day or the selling continues and makes new lows.

 I noted that the Dow, S&P and the Nasdaq all broke out of there downtrend line and were approaching their 50 ma and are now pulling back.  Watch the existing downtrend line as support to see if the markets can hold.

 US Dollar formed a wedge pattern and has stopped and the bottom of that pattern.  This made commodities and stock move higher.  Continue to see the action of the dollar during the trading day. The relationship continues to be stronger dollar weaker equities and commodities and vice versa.    

 Below are some key levels for your review.

SPY Daily:  The spy broke above the downtrend line and stopped at resistance of the 50 ma. With todays action in the futures the downtrend line will act as short term  support. 

SPY Daily Fibonacci levels:  100% – 100.78 , 61.8% – 90.68, 50% – 87.56 , 38.2% – 84.44 , 00.0% -74.34


Dow Industrials:  The Dow also broke out of it’s downtrend line and stopped at the 50 ma. Support is the down trend line at 8421. Dow futures are indicating a breach of that support.  Next support comes in at the 50% retracement of 8235.



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!!








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