The Fluid Trader

Today was surely a day where the bulls came out to play. 

DIA:

We had a strong upward momentum today in price where we could have run with the bulls for most of the day and would have made a nice trade.

• The DIA traded flat for the first hour & half where it had a lateral consolidation.
• Price brokeout upwards.  It was a nice ride for anyone who went long with the bollinger band squeeze and breakout trade.
• Price formed a bear flag between 2PM-3PM.
• Price dipped a little to close higher for the day.

SPY:

SPY had a similar looking chart to DIA.  It was a nice run up by the bulls today which allowed for us to have a nice trade.

• Price traded in a lateral fashion with a lateral consolidation.
• Price broke out upwards at around 10:50AM.
• A Bear flag formed between 2PM-3PM.
• Price slipped at the end of day to close higher.

QQQQ:

The Q’s had a gap to open the session which was filled when price confirmed and uptrend.  Price continued trading upwards until the last hour of trade.

• Open with a gap down.
• The gap was filled and Uptrend was confirmed.
• Price continued driving upwards and formed a bear flag from 2PM-3PM.
• Price dropped but closed positive for the day.

Pivot Points and Price Targets (Supports and Resistance) for Wednesday, 02/27/08, for QQQQ to look out for:

• Pivot Point = 43.97
• Support 1 = 43.46.  Support 2 = 42.86
• Resistance 1 = 44.57.  Resistance 2 = 45.08

It was apparent that the bulls won the session today.  We did have a little bit of weakness at the end but the majority of the day did work out some great trades.  We did break out of the triangular consolidation (upward breakout) in the Dow and S&P 500 in the daily charts as my previous post indicates.  Lets see what happens tomorrow to see if this upward momentum continues.

Until then, be safe and happy trading.

Today we see the Dow and S&P 500 continue their break out of their consolidation with an upward momentum. 
DOW

The Dow Jones Industrial broke out of its consolidation yesterday with an upward thrust.  We continue that breakout with low volume today and as you can see with the chart below, the price bar is completely out of the consolidation today. Let’s see if this breakout continues tomorrow for more confirmation. 

S&P 500

The S&P 500 also broke out of its channel with average volume.  The breakout occurred yesterday and continued today.  Like the Dow, we should wait until tomorrow for more confirmation if the breakout is real.

Nasdaq

The Nasdaq continues to trade in its triangular consolidation.  It looks like it will continue building pressure for a day or so and break out soon.  Let’s keep a close eye on it.

I would like to wait 1 more day to see if the breakout is a true one and if it does continue tomorrow, then I will feel that it is more confirmed for the DOW and the S&P 500.  We still are in a consolidation with the Nasdaq but we should be able to see what will come of it soon. 

Signs of a upward breakout is good and welcomed by the bulls.  Let’s see how this pans out!

Becareful out there!