The Fluid Trader

The Fed cut rates 50 bps today and the Dow’s rally was short lived.  In fact, the rally lasted about 60 minutes and had a rapid descent to close 37 pointslower.  Throughout the day, the Dow was trading flat and around 2:15 PM we see a break to the upside.  At about 3:15PM you start to see the rapid descent or the “avalanche”.  Let’s take a look at the 5 minute chart:

Dow Jones Industrial:

• Bear Flag continues to form
• Near Term Resistance is 12487 (broken today with lackluster volume).
• Near Term Support is 12112
• May continue its downtrend after tagging the 20 period MA.

NASDAQ:

• Near resistance and had a similar open and close price (Doji).  Its quite possible that the prices may dip downwards in the next few trading days.
• Near term resistance is 2415
• Near term support is 2306
• Short Term Trend:  Down.  Intermediate Trend:  Down.  Long Term Trend:  Lateral

S&P 500:

• Looks Similar to the bear flag in the Dow.
• Near Term Resistance is 1368.  It was broken today on average volume but retreated back to 1355 for today’s close
• Near Term Support is 1322
• May continue its downtrend after tagging the 20 period MA.
• Short Term Trend: Down.  Intermediate Trend:  Down.  Long Term Trend:  Lateral/Down

Conclusion:

Although there was a short lived rally today, I believe that the bears are still winning across the board. 

Trade Safe!

What a day!  Today started off as a huge down day with the market shaving roughly 230 points in the first 5 minutes.  We then start seeing an uptrend forming with a Euphoric taste to it.  Let’s look at the chart below:

The Annotated chart tells the story of how we started with a 230 point drop.  You can see at about 12:45PM that we hit our low of the day under 11650.  Shortly after that we start to see higher highs a higher lows meaning an uptrend was forming.  This uptrend was a Euphoric Uptrend that I did not anticipate.  The Dow ended the day with a close of 12270, a 620 point intraday move!

Today was truly historic!  We want to becareful as this was 1 days action and as we see in the daily chart below, we are still in an overall downtrend.

We should look at what the markets should have in store for us in the next few days.  Remember, the FED meeting is next week and we should anticipate highly volatile days to come.

Conclusion:  I’m still bearish

 Be safe!