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 market continued to pull back after the strong run it made. For the day, the
S & P 500 closed 35.65 points lower.
The day closed out at 3,537.01. The market closed 17.54 points below the minor 3,554.55 level.
The range for the day was 50.44 points. This is 78% of the daily average true range, which is now 64.93 points.
Since the range extension on Monday, the market has now had three consecutive range contractions.
This tells us to expect an expansion.
The S & P closed at 37% of the range of the daily bar. This does give a slight nod to the low being violated before the high.
Pre open, the S & P is trading about 22 points higher. This projects to an open around 3,559 or about 10 points below yesterday's high of 3,569.02.
Watch to see if the S & P can take out yesterday's high on a rally.
The support area from yesterday's daily bar is in the 3,544 to 3,550 area.
Watch this area on a sell off.
In looking at how the weekly price bar is forming, we see that it has a range of 134 points. This is 10 points less than the weekly average true range, which is 144 points.
If the market fails and breaks the low, the range would project to a low of 3,500.
The midpoint of the weekly price bar is 3,578.95. This is 25 points above yesterday's close. And with the market trading about 22 points higher pre open, watch this level on a continued move.
A close above the midpoint on the weekly bar would be bullish.
AAMT reported and is trading about $2 higher. DIS reported and is about $4.50 higher.
And DKNG reported and is trading about $4.65 higher.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 35.16
Major level: 34.38 <
Minor level: 33.60
Minor level: 32.03
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
The VIX closed at 25.35. The VIX closed 1.90 points higher.
The VIX managed to close above the 25 level, but under 25.78. It will need to clear 25.78 to head higher.
And the VIX is still below the midband, which is 28.06. This level 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
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
The S & P closed at 3,537.01. The S & P closed 35.65 points lower.
Watch the 3,554.55 level. The market should open right around this level. Watch to see if it can reclaim this level.
If it can't, expect a move lower.
Assuming 3,554 holds, it then open the market for the move up to 3,632.65.
A break under 3,554 and the S & P could test 3,476.
3,541 should be a technical support level.
QQQ:
Minor level: 295.31
Major level: 293.75
Minor level: 292.19 **
Minor level: 289.06
Major level: 287.50
Minor level: 285.94 **
Minor level: 282.81
Major level: 281.25
Minor level: 279.69
Minor level: 276.56
Major level: 275.00
Minor level: 273.44
Minor level: 270.31
Major level: 268.75
The QQQ closed at 288.40. The QQQ closed 1.36 lower.
The next minor level to the upside is 289.06. Two closes above this level and the QQQ should test 293.75.
Like the S & P, the QQQ took out the midband on the 60 minute chart. This level should now be support. The midband is 282.
288 should be support from yesterday's daily bar.
IWM:
Major level: 175.00
Minor level: 173.44
Minor level: 170.31 **
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.70
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
The IWM closed at 169.98. The IWM closed 2.65 lower on the day.
The objective for the IWM should be to the 175 level. And support should be at 168.75 and 167.19.
The IWM took out the upper band on the 60 minute chart. That level is 177.
Looking for a retest of the upper band.
169 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 <
Minor level: 155.47 **
Minor level: 153.91
Major level: 153.13
The TLT closed at 158.37. It closed 2.65 higher. If the TLT can close above 157.03 today, it should head up to 159.38.
The TLT would still need two closes under 155.47 to drop.
The TLT is oversold and is at the lower band on the 60 minute chart. That level is 153.84. The TLT is making the expected bounce from the oversold condition.
160 should be technical resistance.
GLD:
Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38 <
Minor level: 183.60
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: 171.89
The GLD closed at 175.99. The GLD closed 1.06 higher on the day.
The GLD recouped the 175 level. Watch the minor 178.91 and 174.25 levels.
The GLD is back under the midband on the 60 minute chart. This level is 178 and should be resistance. A drop to the lower band, which is 173 should be the objective.
XLE:
Minor level: 41.41
Major level: 40.63
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
Minor level: 30.47
Minor level: 28.90
Major level: 28.13
The XLE closed at 32.69. The XLE closed 1.09 lower on the day.
Watch to see if the XLE can close above the minor 32.03 level today. If it can, we could see a bounce up to 34.
But, the XLE is overbought. It is above the upper band on the 60 minute chart. That level is 33.71. The XLE closed inside the upper band.
This does tell us to expect a rally.
A sell off under this level and the XLE should drop to around 30.
AAPL:
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00
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 119.21. Apple closed $.28 lower.
Apple held the 115.63 level. Watch this level again today. A close today above it, and it should test 125.
And at this point, a move up to 125 should be expected.
And look for support at 115.63. And technical support around 118.
Apple cleared the midband on the 60 minute chart. That level is 116 and should now be support.
WATCH LIST:
Bullish Stocks: GOOGL, TTD, IDXX, ALGN, LRCX, UNH, FB, QDEL, KLAC, CMI, RMD, LH, IT, HON, QCOM, FFIV, BIDU, XLNX, ZEN, MIDD
Bearish Stocks: CRI, INGR, PRU, LEG, VLO, THS, CF, FANG, HFC
