DIA Failure At Resistance Provided Profit For Daytraders

200-day EMA again yesterday, making an intraday high at 103.85 and 103.87 on

Tuesday. After the 10:00 a.m. ET bar 103.85 intraday high, the DIA traded down

to a 102.61 low, closing at 102.67, -09%. There was a Slim Jim continuation

breakout below 103.41, which was the 240 EMA level, and also below all of the

EMAs. From there, it was continuation trend down. The DIA was the best play for

daytraders because of the daily chart 200-/233-day EMA resistance zone. The Dow

(
$INDU |
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PowerRating) was -1.0% to 10,271 and is close to testing that 10,000 level on

any further weakness (see chart). The initial minor range support Thursday is

10,253 with the immediate overhead being the 233-day EMA at 10,388 and 200-day

EMA at 10,412. That same range level for the DIA is 102.44 (see chart). The

other major indices were also red with the SPX
(
$SPX.X |
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PowerRating) -0.8% to 1194.94

and both the
(
QQQQ |
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PowerRating) and Nasdaq
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$COMPQ |
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PowerRating) -0.5% to 36.93 and 2069.

NYSE volume was 1.45 billion shares, the volume ratio 34 and breadth just -388,

zone, and if significant weakness sets in, the larger head-and-shoulder price

objective is about 1098. Breaking the 1192 – 1188 zone, the SPX has downside

room to the 1172 – 1162 zone. Another SPX RST, similar to the 03/07 key price

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Opening Reversal yesterday above 34.45 which was also above Tuesday’s

triple top 34.41 high. It traded +1.4% from entry to a 34.93 intraday high

before fading to close at 34.53. So far, so good for daytraders in the month of