SPX Key Intraday Levels for Traders Today
Kevin Haggerty is a
full-time professional trader who was head of trading for Fidelity Capital
Markets for seven years. Would you like Kevin to alert you of opportunities in
stocks, the SPYs, QQQQs (and more) for the next day’s trading?
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After the Friday mini-meltdown, with the SPX -2.6%, the pre-market SPX/$INDU
futures were -12.5 points and -125 points, while global markets had sold off,
following a U.S. lead. Turns out the helmets were not necessary for Monday, as
the SPY made its intraday low of 148.63 on the opening bar, down from the
previous 149.67 close, and then traded up to a 150.76 high before closing at
150.64 (4:00 PM). The SPX made a 1490.40 low, and closed at 1506.33. As I said
in my previous commentary, the PPT probably met via phone on Friday, and were
ready to play the futures game if Monday looked like it would tank. Net-net, I
think the PPT used some "magic dust" Monday morning, because with the $US Dollar
in the tank, housing decline, slowing economy, in addition to the credit crisis
and financial institutions making huge write-offs for bad inventory, for which
there is still no real market, the PPT did not want anything resembling a 1987
meltdown.
The SPX was +0.9% yesterday, gaining back 50% of Friday’s -2.6% loss. NYSE
volume was 1.31 billion shares yesterday, with the volume ratio positive at 68
and breadth +1161. The energy and commodity stocks bounced back yesterday, with
the OIH +3.7% after having lost -7.0% the previous 2 days. The $US Dollar gave
up most of Monday’s gains, as the $USD closed at 77.57 (-0.6%). This sent gold
up, and also the $HUI, which was +2.7% yesterday. The decline in energy stocks
was a positive for daytraders, as they had made anywhere from 3-8 day
retracements to their 20- and 50-day emas. The best trades are most often in
those stocks with the best daily chart position. The Generals and hedge funds
are in a herd mentality right now, as they overreact to every news bit, which
means it is a very fragile market. If the pre-market red futures hold today,
with the SPX futures -11.8 points as I complete this at 7:10 AM, the PPT might
get another chance to use the "magic dust." For daytraders, it just means where
are the initial downside levels for the first possible contra move. The SPX
closed at 1519.59, and it gets intraday extended at 1505, 1500, 1497 and 1490.
The next key position price zone is 1475-1470, followed by 1461-1459. As a free
trial subscriber, you can get detailed information about intraday levels, in
addition to key price and time zones. Make sure you watch today for any SPX/SPY
reactions if price trades down to the 1505-1490 zones.
The MER additional write-down news today is an ongoing situation with many
different financial institutions, and it is a key contributor to the market fear
factor, and this is a problem that is not going away short-term. The other
significant catalyst is of course the declining $US Dollar, as foreigners see
the slowing US economy and further potential reduction of rates. It is also very
significant that foreigners are now net sellers of US equities right now for the
first time in 1998. Not a good trend. There are 6 trading days left in the
month, so the Generals will do their best to hold or mark up their major
holdings.
Check out Kevin’s strategies and more in the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.
Have a good trading day,
Kevin Haggerty