While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to 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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Yesterday saw some selling pressure in all major markets. The selling was even more evident in the NASD market. But, you would expect that because last week the NASD Composite and the QQQ sold off, as the S & P 500 and DOW made modest moves to the upside.
The S & P 500 opened lower yesterday and dropped to a low of 2,488.03 before recovering to close at 2,496.66. For the day, the market closed down 5.56 points.
After taking out the major 2,500 level, the downside level of 2,492.20 often acts as support. This is similar to the upside level above 2,500, which is 2,509.78, acting as resistance on the first attempt to break through it.
The low yesterday was about four points under the 2,492.20 level. And it was right around the 200 ema on the 30 minute chart, which was 2,498.90.
With both the short term 30 & 60 minute charts in uptrends, and price trading above the moving averages, you would expect them to offer support.
The 253 day average on the 30 minute chart is 2,482.20. And the 200 ema on the 60 minute chart is 2,479.61. The 253 day average on the 60 minute chart is 2,469.72.
Price could drop anywhere from 2,470 to 2,482 and the trend would still be bullish.
Pre open, the S & P 500 is trading slightly to the upside, so a higher open is expected.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16
Major level: 9.38 <
Minor level: 8.60
Minor level: 7.03
Major level: 6.25
The VIX closed at 10.21, up .62 for the day. It stalled out at 11.21 before heading down.
A bounce around the 10.16 level could happen, but I would expect any rally to stall out. Most likely around 10.55.
$SPX:
Major level: 2,539.10
Minor level: 2,529.33
Minor level: 2,509.78 **
Major level: 2,500.00
Minor level: 2,492.20 **
Minor level: 2,476.00
Major level: 2,468.80
Minor level: 2,460.98
Minor level: 2,445.33
Major level: 2,437.50
The S & P 500 reclaimed the 2,492.20 level. A retest of the 2,492 to 2,494 area could be possible, but I would expect support to hold there.
Minor resistance is at 2,505.
QQQ:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
The QQQ closed at 142.80, taking out the 143.75 level. I still expect support at 143.75, but it will have to reclaim this level.
142.19 should offer support.
IWM:
Minor level: 144.53 **
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.15
Major level: 134.37
The IWM closed at 144.50. It will need two closes above 144.53 to move higher.
Support should be at 143.75 and 144.14.
Short term charts remain bullish.
TLT:
Major level: 131.25
Major level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78 <
Major level: 125.00
The TLT closed at 126.99. The objective should be to 128.13.
126.56 should be support. Resistance is at 127.73.
GLD:
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.22 **
Minor level: 122.66
Major level: 121.88 <
Minor level: 120.32
The GLD closed at 124.53. The GLD came within 40 cents of the 125 objective.
If the GLD cannot clear 125, look at retest of 122.
XLE:
Major level: 68.76 **
Minor level: 67.97
Minor level: 66.41 **
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
The XLE closed at 68.17. The objective should be to 68.76 and the XLE it within 30 cents of it.
Support should now be at 67.19. 69.53 is resistance.
The XLE did clear the midband, which is 67.70. It should now be support.
FXY:
Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33 **
Major level: 85.94 <
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
The FXY closed at 86.04. The next minor level is 86.33. Two closes above 86.33 and the FXY should test 87.50.
87.50 should be resistance. 85.55 is minor support.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 150.55. Starting to look like a bounce should happen at this level.
A break under 146.88 would invalidate any long trade.
WATCH LIST:
Bullish Stocks: GOOGL, LMT, NOC, BA, BIDU, FDX, GD, DPZ, LLL, NFLX, ALGN, RTN, MCO, CAT, MON, ALB, CME,
Bearish Stocks: WBA, DXCM, K, LULU, UAL, GIS, TCO, CPB, FNSR
Be sure to check earnings release dates.
