Today the bulls had a good battle to victory. The Dow, NASDAQ, and S&P 500 do confirm a short term uptrend today which allowed the bulls to come out and play!
Dow Jones:
The Dow Jones Industrial Average showed signs of weakness in the first 5 minutes where there was a sell off in the Index. As time went on, we can see that the Dow faded its losses and started the strong uptrend:
- We first see the downward sell off in the first 5 minutes
- Right before covering the losses, we see an uptrend confirmation with higher highs and higher lows.
- Look for signs of weakness if we break through the near term support of 12542
- Look for signs of strength if we break through the near term resistance of 12702
NASDAQ:
The NASDAQ had a strong uptrend after the downward gap this morning. We saw prices break 2400 today with an open of around 2317, a 83 point intraday move upwards. There were some key points that confirmed uptrend and solidified some intraday trend trading. Let’s take a look at the 5 minute chart:
- We can see a downward Gap
- We can see that the Gap was faded
- Just about when the Gap was faded, we had a confirmed uptrended seeing higher highs and higher lows.
- We have a Bollinger Band Squeeze play that we could have played until the end of day.
- Look for signs of weakness if we break through the near term support of 2375
- Look for signs of strength if we break through the near term resistance of 2403
S&P 500:
The S&P 500 had a similar look and feel in its chart as the Dow and NASDAQ. We first notice the selling/gap in the first 5 minutes and then we see the uptrend beginning.
- We see selling in the beginning.
- We then see a confirmation of an uptrend with higher highs and higher lows.
- Gap was faded
- Look for signs of weakness if we break through the near term support of 1367
- Look for signs of strength if we break through the near term resistance of 1385
Although the bulls won the day, the long term outlook is still bearish.
Have fun but be safe!