SPX Near Resistance

Yesterday’s market action was excellent for

traders, especially in the energy stocks and a long RST trade for 9 points in

the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) after the knee-jerk Greenspan reactions to absolutely

nothing we haven’t heard several times before. When the 1192.75 low was taken

out yesterday, that put the SPX in the RST zone, but the initial Trap Door and

RST entries were right in front of Greenspan’s 10:00 a.m. ET curtain call, so

you were just rolling the dice if you took entry. The 10:00 a.m. bar was the

knee-jerk with an 1191.70 low and 1196.12 high and close. However, by 10:40

a.m., the SPX traded back down again to 1191.09, setting up an RST long entry

above 1192.57 which traded up to 1201.96, eventually closing at 1200.93, +0.5%.

the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) +0.8%, closing right on that 2077 .618 number. The

SPX reversal yesterday was off the 1190 – 1191 focus zone, and it also had other

sequence confluence (see 06/09 commentary).

NYSE volume was 1.42 billion shares, volume ratio

62 and breadth +513. The key sector action was in energy with the
(
OIH |
Quote |
Chart |
News |
PowerRating)

+3.5% and XLE +2.9%, along with the semis, as the
(
SMH |
Quote |
Chart |
News |
PowerRating) was +2.1% with

The QQQQ gave you a Trap Door long entry above

37.58 yesterday, which traded up to 38.06, closing at 37.95. This was also a

re-cross of the 20-day EMA, so the trade was easy to take. The QQQQ has retraced

five days to the 20-day EMA and closed in an outside-bar pattern yesterday.

There were numerous energy individual-stock defined-entry setups yesterday in

“Above the Line” stocks, so I have included the
(
APA |
Quote |
Chart |
News |
PowerRating) five-minute chart with

the obvious 1,2,3 Higher Bottom setup at the 240 EMA that should be familiar to

As you can see in the five-minute SPX chart, a

breakout above 1201.97 runs into the 1206.96 – 1208.85 high-range resistance,

and the next RST intraday sell zone comes into play above 1208.85.

Have a good trading day and a great weekend,

Kevin Haggerty