Your Immediate Focus For Thursday
What Wednesday’s Action Tells
You
The rally off the key time and price zone
continued, as the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) price accelerated through that
1111.08 –
1111.89 resistance zone, hitting an 1126.29 intraday high, closing at
1125.40,
+1.3%. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed at 10,002, +1.2%, but it was the techs
that
led with the
(
QQQ |
Quote |
Chart |
News |
PowerRating), 36.76, +2.6%, led by the
(
SMH |
Quote |
Chart |
News |
PowerRating) move of +3.8%.
The
Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) was +2.1%.
NYSE volume increased to 1.75 billion shares
with
up volume just below yesterday at 1.27 billion and a volume ratio of 74 vs.
81
on Tuesday. The breadth was very positive at +1261, just below Tuesday’s
+1370.
It was a bigger percentage day for the
primary
sectors yesterday as the XBD was +3.9%, PPH +3.0% and RTH +2.2%.
Some of the
Generals’
losers and bonds were
sold
(TLT, -0.9%) to pay for the push into fiscal year-end for some large mutual
funds. You know the drill. “If they can, they will.” And for the
past two days,
they are.
For Active
Traders
I have included the SPX five-minute chart
which
shows the acceleration after breaking above the lines and after the early
retracement to 1107.43. This corner’s daytrade was gone into the 200-day SMA
at
1119.38 and the two-hour Slim Jim, but trailing stops in the index proxies
put
on Friday and Monday had moved up nicely. Short-term unhedged positions will
go
flat into the weekend and election next week. Positions taken in the key
price
zone are better off hedged into the weekend/election as there are good
profits
built in because you bought them at the lowest common denominator in the
price
zone. The last thing you want to do right here is chase rising price into
the
October month-end just prior to next week.
Today’s
Action
The immediate overhead focus levels in the
(
SPY |
Quote |
Chart |
News |
PowerRating) are the 113.54 .786 retracement to 114.68 and the 113.74 swing
point
high of 09/21. The Generals will keep the SPX above 1111.92 (last year’s
closing
price) if they can, especially since many of the Generals are now just
quasi-index funds anyway, not to mention the mark-up into month’s end.
The QQQ hit a 36.89 intraday high, closing at
36.73 and once again pushing up to that 37 – 37.50 downtrend channel zone
with
the 37.90 resistance just above. Above 37.90 is where an RST sell pattern
(daily
chart) can form.
The
(
DIA |
Quote |
Chart |
News |
PowerRating) closed at 100.14, and the
100.37
intraday high was right at minor resistance. The longer-term EMAs are 100.68
and
101.
If they open up on Thursday and reach Trap
Door
levels, then intraday shorts taken should have fairly tight
stops.
This is being done Wednesday for Thursday
because
it is World Series game night, and that is of some interest around
here.
Have a good trading day,
Kevin Haggerty
