First of all, an apology for an absent post yesterday.  I was out of town yesterday and did not come back until late.  So here’s a post for today!

A consistant downtrend occurred today throughout the markets.  It looks as though the markets were poised to move upwards in the early hours but hit a ceiling and continued yesterday’s downtrend.

DIA:

We see a double bottom which signaled a sign of stength and saw prices rising only to hit a ceiling and start its downward trend.

dia_5min_080206.png

  • We see a double bottom form (between end of session yesterday and beginning of session today) to signal strength.

  • Price rose until around 11:20AM

  • Downtrend is confirmed around 12:40AM.  The DiA starts trading in a downward channel.

Pivot Points and Price Targets (Supports and Resistance) for Thursday, 2/7/08, for DiA to look out for:

  • Pivot Point = 122.66
  • Support 1 = 121.40.  Support 2 = 120.55
  • Resistance 1 = 123.51.  Resistance 2 = 124.77

QQQQ:

We see strength in the beginning of the session but see a bear flag form.  We then see a steep downward tumble in the Q’s.

qqqq_5min_080206.png

  • We see strength from the start of the session, however, we see a bear flag forming.
  • Around 12:25PM we see a confirmed downtrend.
  • We see a continued selloff in a downward channel similar but steeper than the DIA.

Pivot Points and Price Targets (Supports and Resistance) for Thursday, 2/7/08, for QQQQ to look out for:

  • Pivot Point = 43.25
  • Support 1 = 42.33.  Support 2 = 41.85
  • Resistance 1 = 43.73.  Resistance 2 = 44.65

SPY:

Once again, we see strength with a double bottom and saw prices driving upwards and then price hit a ceiling and traded downard.

spy_5min_080206.png

  • We see a double bottom form from end of session yesterday and beginning of session today.
  • Price moved upwards
  • A confirmed downtrend happened around 12:15PM
  • The SPY traded in a downward trend within a channel.

Pivot Points and Price Targets (Supports and Resistance) for Thursday, 2/7/08, for SPY to look out for:

  • Pivot Point = 133.57
  • Support 1 = 131.89.  Support 2 = 130.73.
  • Resistance 1 = 134.73.  Resistance 2 = 136.41.

Its been interesting watching the markets unfold.  Today is a prime example of how you cannot predict how the market moves and what trend it will have.  The best thing for us to do is learn from it on a daily basis.  Its better to hone your skills and see if you notice patterns forming that trigger a move.  This is what I like to call The Art of Technical Analysis.

Until later, Trade Safely!