Daytraders Ride SPX And QQQQ Trend Yesterday

with the +0.9% SPX
(
$SPX.X |
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first two days of June were +1.1% and May +0.4% (first three days of May were

+1.6%). The Dow
(
$INDU |
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(
QQQQ |
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volume ratio 67 and breadth +940, both a bit light for the relative price

advance. Energy led the sectors on an OIH (+3.6% close) strong opening that

never looked back, while the XLE was +3.0%. The RTH finished +2.2% due to the

(
WMT |
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PowerRating) +3.2% reaction on an announced report. Also outperforming the SPX was

the SMH (semiconductors) +1.7%. The
(
TLT |
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CRB +1.9% and XAU -2.6%. Gold closed at 427.53, -1.8%, while crude oil went out

at 59.59, +1.4%. The US Dollar was up small, +0.2%, to 90.39 which is into a

the
(
SPY |
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PowerRating) 50-day EMA at 119.37 and 12-month EMA for the QQQQ at 36.67. The

intraday lows were 119.20 and 36.60. It was also an RST long entry for the SPY

above 119.32, which was the high of the opening bar. Both trades were gifts to

closed at 27.19, below all of its 40-week (28.23), 15-week (28.15) and 5-week

(27.51) EMAs, which is a “Below the Line” situation after having broken its

long-term trendline from the 15.86 October 2000 low. The
(
DIA |
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1,2,3 LT in progress (see chart), closing again below its 103.89 40-week EMA at

103.63. It has also broken its longer-term trendline from the October 2002 lows.

The SPY closed at 120.45, above its now rising 40-week EMA of 117.37 for a +2.6%

spread over the 40-week EMA. The Transportation index ($TRAN) and XLI are in

similar 1,2,3 LT patterns. On the positive side is the IWM (Russell 2000) which

Transportation index and XLB vs. the SPX must be negated if the SPX is to make