Today we had a downtrend happening in the overall equities market. Let’s take a closer look.
DIA:
We see a small double top form around noon today after the DIA moved below the pivot Point that we established on Friday (127). After the double top, we see a downward channel form for the lower close.
- We see the decline in price going below the Pivot Point of 127 that was established on Friday. We see that price bounced off the Support 1 of 126.39 that we also established on Friday. We have a good idea that we will be somewhat lower than Friday’s close.
- We see a double top form around noon for more bearish confirmation.
- We see a channel form with price going down. And once you are in a trend, the more like the trend will continue.
Pivot Points and Price Targets (Supports and Resistance) for Tuesday, 2/4/08, for DiA to look out for:
- Pivot Point = 126.42
- Support 1 = 125.58. Support 2 = 125.14
- Resistance 1 = 126.86. Resistance 2 = 127.70
QQQQ:
Price tagged resistance (Pivot Point established on Friday) and started its downhill descent.
- Notice the Double Top at the end of Friday’s Session. The downtrend confirmed today.
- We see price tag resistance at around 11:30AM and then continued its downtrend.
- We see price play within the predetermined range between the Pivot Point and the Support 1
Pivot Points and Price Targets (Supports and Resistance) for Tuesday, 2/4/08, for QQQQ to look out for:
- Pivot Point = 45.17
- Support 1 = 44.73. Support 2 = 44.50
- Resistance 1 = 44.50. Resistance 2 = 45.84
SPY:
Price tagged resistance (Pivot Point) twice to form a small double top and price drove down steadily.
- We notice Price started downward below the pivot point to indicate weakness
- Price made a double top at the pivot point to confirm more weakness
- We confirm a stronger downtrend and see price steadily goind downward.
- Close is below Support 1.
Pivot Points and Price Targets (Supports and Resistance) for Tuesday, 2/4/08, for QQQQ to look out for:
- Pivot Point = 138.31
- Support 1 = 137.33. Support 2 = 136.65
- Resistance 1 = 138.99. Resistance 2 = 139.97
Today we see a confirmed downtrend in all 3 of these markets. Will the Bears continue on their conquest tomorrow or will the bulls see a little bit of relief? Look to the pivot points to see if there will be weakness or strength in the markets if the price ends below (weakness) or above (above) the pivot point.
Once again, Trade Safely!