While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
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The S & P 500 reversed to the upside after the bearish long-range candle on Monday.
For the day, the S & P 500 closed 35.67 points higher. The market closed the day out at 3,694.62.
The intra day range was 35.67 points. This was 82% of the daily average true range, which is 43.43 points.
The daily price bar closed at 98% of the range of the daily bar. This does suggest that yesterday's high of 3,695.29 should be violated before the low of 3,659.62.
But, even with the bullish move yesterday, the daily price bar was still an inside day.
This means the daily price bar had a lower high and a higher low.
Usually, price will continue in the direction of the break out of the inside day. In other words, if price takes out the high, it tends to continue in that direction.
The same holds true for a violation of the low.
This is why it is imperative to monitor the high and the low.
And support should now be at the midpoint of Monday's daily bar, which is 3,671.
Support from yesterday's daily bar is in the 3,677 to 3,680 area.
Pre open, the S & P is trading about 7 points higher. This projects to an open around 3,701.
This would be 6 points above yesterday's high of 3,695.29.
Look for support at yesterday's high on a pullback.
JBL reports Thursday after the close, along with FDX. DRI and WGO report Friday before the open.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
Minor level: 24.22
Minor level: 22.66 **
Major level: 21.88 <
Minor level: 21.10 **
Minor level: 19.53
Major level: 18.75
The VIX closed at 22.89. The VIX closed 1.83 points lower. This was the first close under 24.22.
A close today under 24.44 and the VIX should drop to 18.75.
Yesterday's high went to 24 or 1 point under the 25 resistance level. This level should still be resistance.
The midband on the 60 minute chart, which is 25.60 should still be resistance.
S & P 500:
Major level: 3,749.80 <
Minor level: 3,710.75
Minor level: 3,632.65 **
Major level: 3,593.60 <
Minor level: 3,554.55
Minor level: 3,476.45
Major level: 3,437.40
Minor level: 3,398.35
Minor level: 3,320.25
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00
The S & P closed at 3,694.62. The S & P closed 47.13 points higher.
The objective should still be to the 3,749.80 level.
And support should still be at the 3,632.65 level. And 3,671 is a minor resistance level.
The 3,670 area should be a technical support area.
QQQ:
Major level: 312.50
Minor level: 310.94
Minor level: 307.81 **
Major level: 306.25 HIT
Minor level: 304.69 **
Minor level: 301.56
Major level: 300.00
Minor level: 298.44
Minor level: 295.31
Major level: 293.75
Minor level: 292.19
Minor level: 289.06
Major level: 287.50
Minor level: 285.94
The QQQ closed at 307.29. The QQQ closed 3.25 higher.
The next level for the QQQ is 307.81. Two closes above this level and the QQQ should head up to 312.50.
Support should be at the 306.25 level.
Technical support is also around 306.
IWM:
Minor level: 195.31 **
Major level: 193.75 HIT
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 181.25
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
The IWM closed at 194.68. The IWM closed 4.75 higher on the day.
The IWM took out the 193.75 objective we were looking for.
And it would suggest that support should be at the 192.19 level.
193 should be technical support.
TLT:
Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03 **
Major level: 156.25 Hit
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The TLT closed at 157.80. It closed .53 lower. Watch the minor 157.03 level today. This should be support. A break and expect the TLT to drop.
The objective for the TLT should be up to159.38.
Watch the 156.25 level. A break under this level and the TLT should head lower.
The TLT is right at the midband on the 60 minute chart. This level is 158.29. Watch for either a break of this level, ot for it to hold as support.
GLD:
Minor level: 182.03
Major level: 181.25
Minor level: 180.47
Minor level: 178.91
Major level: 175.00
Minor level: 174.25
Minor level: 172.70 **
Major level: 171.88
Minor level: 171.10
Minor level: 169.53
Major level: 168.75
Minor level: 167.97
The GLD closed at 173.94. The GLD closed 2.40 higher on the day. The GLD closed back above the minor 172.70 level.
A close today above 172.70 and the GLD should test 175.
The GLD is under the midband on its 60 minute chart. That price level is 175.
This level should be resistance.
XLE:
Major level: 43.75
Minor level: 42.95
Minor level: 41.40
Major level: 40.63 < HIT
Minor level: 39.83 **
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.37
Minor level: 33.59
Minor level: 32.03
Major level: 31.25
The XLE closed at 40.46. The XLE closed .78 higher on the day. Watch the major 40.63 level today. A move above this level and the XLE should head higher.
Two close under 39.83 today and the XLE should drop to 37.50.
But, the XLE is above the midband on the daily chart, which is 38.43 and should be support.
AAPL:
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00 HIT
Minor level: 121.88
Minor level: 115.63
Major level: 112.50
Minor level: 109.13
Minor level: 103.13
Major level: 100.00
Apple closed at 127.88. Apple closed $6.10 higher.
Apple took out the 125 level we were looking for.
Watch for support at 125.
The 124.00 area should provide technical support.
WATCH LIST:
Bullish Stocks: TTD, NOW, ROP, RNG, TWLO, SPOT, ROKU, PANW, SEDG, CVNA, GS, SQ, TTWO, DIS, ETSY, BAND, FIVN, BIDU, JNJ, PKI, MTCH
Bearish Stocks: AMT, RETA, ETR, PNW, D, ED, K, BMY, CNC, SO, ELS, NUVA
