S&P Levels

This one’s going to be quick and dirty.

Since I’ve already posted numerous monthly charts for both indexes here and on twitter, let’s not waste our breath: they’re bullish - and it will take a lot of damage to change that on the long-term time frames.

So let’s get to it:

[COMPQ daily chart]

Well even though we are in a range for the last 2 weeks there are plenty of opportunities for day traders to make money. Also the range gives us well defined entries for a trend trade based on a breakout or breakdown.

Well I shot a ETF in 60, which was going to be my video debut at FINZ.tv but due to technical difficulties we were not able to get it produced in time for today’s open. That’s ok it was a lot of fun and bloopers galore but my videos are coming soon to a computer near you.

Well we are still in this range, Wave 2 on the DJIA and SP500. The QQQQ have been the strongest of the 3 putting in a new high of the year yesterday at 34.06. I posted that 34 was resistance for the QQQQ yesterday. I still feel the same way about the markets. The probabilities of taking out April lows increases with the indices closing below their respective daily 20sma’s and 60min 50sma’s.

As far as the markets are concerned we have a nice gap down opening this am on the heels of the swine flu epidemic news. Whatever the reason it does not matter to us our job is to trade the tape and take the best trade opportunities that are presented.

Well I came into yesterday expecting a pullback in the markets. I posted in our chat early am yesterday that the hourly supports for the DJIA were at 7900 and then 7775. The 7900 level was tested and held.

Well we were on the money again yesterday. We took out Monday's highs in the first 30 minutes but we did not do it with conviction. It is now important for the markets to continue this rally to hold their respective daily 50sma's.

Well yesterday opened up to a fantastic morning rally in the futures markets that was very strong all day long. Yesterday was one of the 5 largest up days in stock market history. The DJIA blew thru the 50day sma. The McClellan Oscillator closed in overbought levels yesterday at 262.83.

Today’s Market Commentary Thursday March 5, 2008
My upside target for yesterday’s rally was 6900 and if you take into account the overnight markets the full rally was 368 points.
“Thirty minutes and -150 points saw the bears whack 1/2 of the daily gains.

Today’s Market Commentary Wednesday February 25, 2009
Well we got our rally I was looking for it was the largest percent move up day this month and second best up move for the year.

The DJIA is down 14% in the last 10 days making new lows. Today was a historic day, no doubt. We are in 4 standard deviations low without any significant bounce in this downtrend. We are back below the 1998 financial crisis levels and back down to the dip in 1997. The QQQQ 2002 low was 19.76 and the SP500 low was 733.54.

Once again the DJ30 is the weakest of the 3 major indices closing again at a new low while the SP500 holding and QQQQ are still above their respective November lows. The SP500 is the level to watch with that 741 November low being the most watched level now.

Well as you all know we had a big down day today and tested the November 08 closing low. However we still have not tested The November 08 intraday low of 7449. Remember true double bottoms will take out the prior low with volume.The SP broke 800;
Today I my indicators are looking for an oversold bounce to the upside for the morning markets.

Well we had a huge market reversal yesterday off of the home mortgage news that came late in the day. We did get that 7700 level I was looking for in any weakness. If you look at the DJ on a daily chart you will notice the last 2 day candles.

Today's Market Commentary Tuesday February 10, 2009

Not much to write about the last 2 days. The last 2 days have been scalp days with the indexes chopping around until the Treasury announces the banking plan today, and then later when the Congress does a final vote on the spending plan.