Wednesday, March 7, 2007

Bulls and bears take a break

EEM, Emerging Markets ETF, is right at a resistance level that I have identified with the red lines. I will be looking to go short tomorrow somewhere around 106.94. The blue lines are areas of support where I will exit any short and look to go long.

DIA, Dow index ETF, price has moved up to the 8 EMA(black). SPY has almost the same chart, QQQQ has not made it up to it's 8 EMA. The red lines on the daily chart I identified as resistance areas, as you can see we are at one right now, so I will be looking to go short. The blue line is now a area of support where I will be looking to get out of any short and possibly going long if price stabilizes there.

I want to look for a trigger to go short, either a MACD cross on the 60 min. chart or something on the 15 min. chart which I don't use very much. On the 15 min. chart you can see a clear uptrend line. I will use a break of that as a short trigger.


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