Daytrading Focus Zones For QQQQ, SMH And DIA

The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) ranged between 1194.33 –

1188.30 all day, closing at 1190.69, -0.85 (-0.07%), while the
(
SPY |
Quote |
Chart |
News |
PowerRating) closed

at 119.15, +0.01%, ticking up after 4:00 p.m. ET. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) lost 7

-0.4% to 2045. The Transportation index ($TRAN) is challenging its 04/25/05 3348

low, hitting an intraday low of 3382 yesterday and closing at 3396. The only

sector to close green was energy, with the
(
OIH |
Quote |
Chart |
News |
PowerRating) +1.3% and XLE +1.5%. On the

downside, the
(
SMH |
Quote |
Chart |
News |
PowerRating) lost -1.4% to 33.62 with the 50-day EMA at 33.61 and

just below that the 89-day EMA at 33.30 and 200-day EMA at 33.13. This is a

daytrader’s zone of interest, but it doesn’t look like (at 7:30 a.m.) it will

happen with early carryover weakness as the S&P futures are +2.80, Dow +25 and

Nasdaq +5, in addition to crude oil ticking down. However, we do know how fast

these things change. The quarter ends on Thursday, June 30, so any upside

activity will probably be today and Wednesday. If there is more rebalancing

and/or reallocation program action, Thursday could also provide some volatility.

NYSE volume was 1.36 billion shares with the

volume ratio 40 and breadth very neutral at just -42. The
(
DIA |
Quote |
Chart |
News |
PowerRating) traded down

to a 102.41 intraday low yesterday from 106.51 six days ago. 102.47 was the

1,2,3 HB long entry level after the retracement to the 04/29 99.89 low. Also,

102.42 is the .618 retracement to that 99.89 low. The 200-day EMA is up at 104,

so after Thursday and Friday’s big-volume decline, some

short-covering/profit-taking could take the DIA back to the 103.65 (233-day EMA)

and 104 (200-day EMA) zone. The DIA closed at 102.95 Friday with a doji bar, and

you should now have a daytrading focus range either way where you might get

involved. The QQQQ remains a primary daytrading focus today having closed at

36.80 with the 233-day EMA at 36.76 and 200-day EMA at 33.89. The intraday low

yesterday was 36.70.

Have a good trading day,

Kevin Haggerty

P.S. I will be
referring to some charts here:
www.thechartstore.com in the future.