Reversal Bonus Day For Traders

the
(
SPY |
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PowerRating) on the 10:00 a.m. ET bar with entry below the low of the high bar,

which was 120.67. There was also a continuation short entry below all of the 20,

60 and 240 EMAs with entry below 120.33. The SPY traded down to 119.75 on the

12:35 p.m. bar before trading to 120.18, then down to an intraday low of 119.73.

This new low created an RST buy entry above 119.85 with entry on the 3:35 p.m.

bar, and the SPY traded to 120.18, closing at 120.15. You had the necessary

information going into Friday’s trading to anticipate any potential intraday

reversal and were alert to play any good intraday short setups going into this

time period and that’s exactly what you got. The SPX
(
$SPX.X |
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News |
PowerRating) closed at

1196.04, -0.7% and -0.2% on the week, with the Dow
(
$INDU |
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News |
PowerRating) -0.9% to 10,461

and -0.8% for the week. The
(
QQQQ |
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PowerRating) ended Friday at 38.10, -1.5% and -0.3%

on the week, as did the Nasdaq
(
$COMPQ |
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News |
PowerRating) which closed at 2071 and -1.3% on

(
OIH |
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Chart |
News |
PowerRating), +0.8%, and XLE, +0.6%. Energy led all sectors for the week, with the

OIH +2.2% and XLE +2.3%. NYSE volume fell off to 1.28 billion shares with the

volume ratio 34 and breadth -388. The QQQQs and SPY closed just above their 34

EMAs (120-minute chart), which are 38.05 and 119.84, while the DIA (“523 Trend”)

went negative, closing below its 34 EMA for the third straight day at 104.72 vs.

the 120-minute chart to be the long-term intraday trend, so 34 EMA retracements

become a two-way focus this week. The Nasdaq closed at 2071.43 vs. the 34 EMA at

is at the top of its eight-month trading range from 34.95 – 29.66. It closed at

35.11 on Thursday and 34.82 Friday after making a new rally intraday high of

35.23. The SMH has already rallied +17.9% low-to-high in 34 days, which is also

a Fibonacci number on the 06/03/05 key time date. The 34 EMA is 34.44, and the

five-minute chart early downside focus is 34.78, which is Friday’s intraday low

and just below the 240 EMA of 34.80. This corner will not buy the breakout of

that trading range this week and would wait for any retracements if it does. You

should always be aware of the “523 Trend” levels, in addition to early alert