Be Advised: Important Short -Term Price Zone
What Monday’s Action Tells
You
The market action was neutral yesterday with
NYSE
volume of 1.38 billion, the lightest since last Monday. The volume ratio was
telling you nothing definitive at 49, which is also the 4 MA. Breadth was
+158
with the 4 MA just as neutral at +168.
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed down less than
a
point to 1094.80 with the 233-day EMA at 1095.85 and 12-month EMA at
1093.27.
There are five sequence numbers from 1095.85 – 1089, including those
longer-term
moving averages, so the price action is important here. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)
closed at 9750, -8 points, while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating), 1914, was minus
a
point. The
(
QQQ |
Quote |
Chart |
News |
PowerRating) ended at 35.63, -0.5%.
In the primary sectors, the positive was that
the
(
SMH |
Quote |
Chart |
News |
PowerRating) was +0.6% and green all day, while the CYC finished at
+0.3%.
The opportunities for traders in the major
indices were weak. The SPX Trap Door with entry above 1091.26 with the 10:05
a.m. ET low of 1090.19 only carried to 1094.73, then went sideways and down,
making a double bottom at 1090.52. There was a quick reflex up to 1096.76
from
1:00 p.m. – 1:20 p.m., but it was sideways into the 1094.80 close. Not a
very
productive day as the daily SPX range was only 6.6 points.
All of you RST players should be aware of
both
the Dow and the SPX (daily chart).
Today’s
Action
The best you can do in front of the election
is
to just react to overreactions caused by media hype. It is a short-term
important price zone, but the event risk is also very high, especially if
Bush
should gain any momentum.
Nothing good happens to the SPX on the upside
unless it can re-cross (with volume) the 1095.85 233-day EMA and 200-day EMA
at
1100.93.
Have a good trading day,
Kevin Haggerty