We saw steady less volatile day with price pointing downward for the day.  Let’s take a closer look.

DIA:

We saw the DIA start with a Gap up that was faded early in the trading session.  We then saw a steady downtrend to have it close lower than the previous day’s close.

dia_5min_080221.png

  • We had a gap up that was faded within an hour’s timeframe.
  • We have a confirmed downtrend that met a bear flag.  The price fell right after the breakthrough.
  • We see price consolidating until the end of the day where price tagged the resistance levels in the last bar.

Its a possibility that the consolidation will continue for a little to break through or we may open with a gap tomorrow.  Let’s tune into tomorrow’s price action to see where we go from here.

SPY:

This chart is very similar to the one we see for the DIA.  We have a Gap that was faded early which was met with a downtrend.

spy_5min_080221.png

  • We see a Gap that was faded early in the session.
  • We confirm a downtrend which was met with a bear flag.
  • We have a long consolidation for the rest of the day and then we see price tag the resistance line at the end of day.

The consolidation is quite a long one and will probably be broken soon (if not by a gap then a breakthrough).

QQQQ:

We had a big gap at the beginning of the session where we met a double top and prices fell from there.

qqqq_5min_080221.png

  • Price had a gap up at open.
  • A Double Top formed where price met a downtrend.
  • We had several bear flags that formed and price confirmed its bearish sentiment after the formations.
  • Price ended the day in a bull flag formation. 

Let’s see what happens tomorrow!

Pivot Points and Price Targets (Supports and Resistance) for Friday, 02/22/08, for QQQQ to look out for:

  • Pivot Point = 43.78
  • Support 1 = 43.09.  Support 2 = 42.65
  • Resistance 1 = 44.22.  Resistance 2 = 44.91

I will only be providing Pivot Point analysis on the QQQQ as I favor this ETF over the others and trade it more. 

It was interesting how the last few days we had clearer signals and less volatility.  It will be interesting to see what happens tomorrow to end the week!

Until then, have a great evening and trade safely!