Today we saw some fade the gap plays that met weakness in the midday to then find some strength towards the end of the trading day.  Let’s take a closer look and the DIA, QQQQ, and SPY.

DIA:

The Diamonds traded below the Pivot Point for the majority of the day.  We did have a break above the Pivot Point and below Support 1 but the trading range was usually between those two points.

dia_5min_080208.png

  • We see and opening Gap to the downside that was filled within the first 30 minutes of trading.
  • Slight uptrend at beginning of session.
  • Confirmed downtrend right around noon and continuation to the downside.
  • We found some strength towards the afternoon session but closed weaker.

Pivot Points and Price Targets (Supports and Resistance) for Monday, 02/11/08, for DiA to look out for:

  • Pivot Point = 121.90
  • Support 1 = 120.92.  Support 2 = 120.10
  • Resistance 1 = 122.72.  Resistance 2 = 123.70

QQQQ:

The Q’s confirmed the forming uptrend from yesterday to find weakness during most of the rest of the day.  The Q’s ended up finishing stronger towards the end.

qqqq_5min_080208.png

  • We see the uptrend confirmed in the first 5 minutes of trading.
  • We are met with weakness in midday trading with a downward consolidation channel.
  • We ended the session on strength with the Q’s closing above the Pivot Point and higher than yesterday’s close.
  • The trading range was between Resistance 1 (not shown as it was above 43.8) and the Pivot Point which acted as support today.

Pivot Points and Price Targets (Supports and Resistance) for Monday, 02/11/08, for QQQQ to look out for:

  • Pivot Point = 43.44
  • Support 1 = 43.11.  Support 2 = 42.25
  • Resistance 1 = 43.94.  Resistance 2 = 44.27

SPY:

Similar to the DIA, we see strength at the beginning of the session, weakness at midday, and then a bit of strength at the end of session.

spy_5min_080208.png

  • We see a gap at the open of the trading session which was filled by 11:00AM.
  • We see weakness right after that in a downward channel where support 1 was tagged and slightly broken.
  • We see some strength after the tag to end up closing below yesterday’s close and under the Pivot Point.

Pivot Points and Price Targets (Supports and Resistance) for Monday, 02/11/08, for SPY to look out for:

  • Pivot Point = 133.13
  • Support 1 = 132.04.  Support 2 = 131.01.
  • Resistance 1 = 134.16.  Resistance 2 = 135.25.

The market is still pretty volatile and we don’t know where things will go the next bar!  You see strength, weakness, strength, and more weakness throughout the trading days lately.  I am happy to see that the Pivot Points are working out to see what the trading range will be for the day.  I’m pretty happy with them so far and will continue on with them!

Have a great weekend and becareful out there!

Trade Safely but be sure to have fun!