I have decided to do intraday market analysis on ETFs based on a suggestion.  I will continue the Wednesday evening and Weekend Analysis on the Indexes themselves.  I will also be experimenting on pivot points in the next few weeks to see if the formula gives a good idea on what the trading range will be.  It will also help forcast an uptrend or downtrend within the intraday charts.

DIA:

We see a narrowing triangle consolidation that ended breaking to the upside steadily.

dia_5min_080201.png

  • Triangle consolidation formed in the beginning of the trading session.
  • Broke out upwards steadily with fairly low volume
  • The Pivot Point to look out for is 127.  We’ll have a better idea of where the trend of the day will be when price is either above (uptrend) or below (downtrend) this line.
  • Support Line 1 = 126.39 and Support Line 2 = 125.35.  If the support breaks through support 1 violently, look to support line 2.  If it breaks out violently past this point, then we are in a strong downtrend
  • Resistance 1 = 128.04 and Resistance 2 = 128.65.  If price breaks through resistance 1 then look to resistance line 2.  If it breaks out beyond Resistance point 2, then we have a strong uptrend.

QQQQ:

We see a little sell off turn into steady gains.  There was a Bollinger Squeeze play that we could have made to create a decent intraday profit.

qqqq_5min_080201.png

  • Bollinger Band Squeeze play a little past 1:00PM.
  • We see a steady upwards trend thereafter with pretty low volume throughout the day.
  • The Pivot Point to look out for is 45.45.  We’ll have a better idea of where the trend of the day will be when price is either above (uptrend) or below (downtrend) this line.
  • Support Line 1 = 45.02 and Support Line 2 = 44.45.  If the support breaks through support 1 violently, look to support line 2.  If it breaks out violently past this point, then we are in a strong downtrend
  • Resistance 1 = 46.02 and Resistance 2 = 46.45.  If price breaks through resistance 1 then look to resistance line 2.  If it breaks out beyond Resistance point 2, then we have a strong uptrend.

SPY:

This chart looks very similar to the Diamonds chart where you have a narrowing triangular consolidation that “breaks out” towards the upside in a steady fashion.

spy_5min_080201.png

  • Triangle consolidation forms that breaks upward steadily
  • Low Volume
  • The Pivot Point to look out for is 138.90.  We’ll have a better idea of where the trend of the day will be when price is either above (uptrend) or below (downtrend) this line.
  • Support Line 1 = 138.20 and Support Line 2 = 136.81.  If the support breaks through support 1 violently, look to support line 2.  If it breaks out violently past this point, then we are in a strong downtrend
  • Resistance 1 = 140.29 and Resistance 2 = 140.99.  If price breaks through resistance 1 then look to resistance line 2.  If it breaks out beyond Resistance point 2, then we have a strong uptrend.

Have a great weekend and be safe!  Make sure to keep warm and enjoy the Superbowl!!!