Going Into The Key Time Dates, I Like What I See
What Wednesday’s Action Tells
You
Yesterday’s afternoon air pocket gave the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) a 17.9-point daily range as it closed at 1113.64, -0.7%,
having
made an intraday low of 1109.63. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) at 10,002 was
also -0.7%,
while both the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating), 1921, and the
(
QQQ |
Quote |
Chart |
News |
PowerRating), 35.61, were
-0.2%.
The semis were the only sector to finish
green
with the
(
SMH |
Quote |
Chart |
News |
PowerRating) +1.8%, but having been up more than 4.0% before the
afternoon
program-accelerated SPX air pocket which broke price below minor support and
the
rising channel trendline from the 1061 low on 08/13. I have included that
daily
chart.
(
INTC |
Quote |
Chart |
News |
PowerRating) managed to hold gains at +3.5%,
while
focus list stock
(
MRVL |
Quote |
Chart |
News |
PowerRating) was +4.7%.
NYSE volume expanded to 1.55 billion with a
volume ratio of 25 and breadth -1142. This is what I want to see more of
going
into the latter part of this month and some key time dates.
For Active
Traders
The early gap up in the major indices set up
the
Trap Doors right at Fib extension levels. It didn’t matter whether you
traded
the
(
SPY |
Quote |
Chart |
News |
PowerRating),
(
DIA |
Quote |
Chart |
News |
PowerRating), QQQs or their futures. The gap up also took prices
high enough to set up
RST sell patterns along with the Trap Doors. This
corner
covered futures too soon on the contra move down because the semis were
holding
up and thought there would be a reflex move in the direction of the open.
The
SPX hit an 1127 high right at our 1128 – 1130 resistance outlined going into
yesterday’s trading.
The early cover was to be forgiven with
another
short opportunity as the afternoon flag breakout down below all the EMAs on
the
1:15 p.m. ET bar took the SPX below its rising channel line and also below
the
1115 – 1113 minor support level. The SPX traded to an 1109.63 intraday low,
closing at 1113.64.
Today’s
Action
The 4 MA of the volume ratio is 34, while the
breadth 4 MA is only -298 indicating the institutional program selling in
big-cap stocks. The 5 RSI is 30.4, so were are getting close to that
short-term
oversold zone. A wash down to the 1100 – 1093 zone is the better scenario
from
these levels. Today’s immediate upside SPX focus starts with the 89-day EMA
at
1112.95, the 50-day EMA at 1115.18, which is also the rising trendline zone.
Yesterday’s reversal was enough to quiet the
futures this morning, as they are flat at 8:00 a.m., but I would hope that
today
would bring some more travel range.
Have a good trading day,
Kevin Haggerty
P.S. Spend the next year trading with me.Â
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