SPY - 60 min. chart showing short set-up.
SPY - Bouncing off resistance levels that I mentioned several posts ago. Targets are the blue lines.
QQQQ - 60 min. chart, went short on break of trend line at 42.81.
QQQQ - bouncing off resistance levels that I mentioned several posts ago.
DIA - the support levels are the blue lines.
I could have picked any index ETF(DIA, QQQQ, ect.) or gold, silver, and any foreign index ETF, and the charts would be pretty much look the same. I choose EZA, South Africa index, to highlight. Price has bounced from it's daily 200 EMA(green) right into it's 21 EMA(red) resistance. I would be looking for short entries for a possible 2nd leg down.
On the 60 min. chart, price is at the 200 EMA(green) and .50 fib. resistance. I'm waiting for the uptrend line line to break and the trend to turn bearish(blue under red line) to trigger a short.
Price on EEM, Emerging Markets ETF, has moved up to trend line resistance and stopped. Moving averages are bearish right now, and will take some major price movement to get back to bullish.
On the 60 min. chart we are at 200 EMA(green) resistance, .61 fib resistance, and trend line resistance. It will take allot of energy to get through resistance, it could happen, but I think the probabilities favor the downside. I think we are going to get some back and filling if we are to go higher. I will be watching on the 60 min. chart for the 13 EMA(blue) to cross under the 21 EMA(red) to go short.
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.
I did cover my remaining short position in DIA today for a nice $4.26 gain. Even though I think the market will be going down again, I wanted to lock in my gains and hopefully get a better level to get short again soon.
As I mentioned in my post yesterday, the rubber band was getting stretched to far and we were due for a bounce, well today we got a bounce. I included a daily chart along with the 60 min. chart (bottom) of QQQQ to show that even though we had a rally today, which I think is a dead cat bounce, the trend on the 60 min. chart has not turned positive(blue line over red). This is true with all the index ETF's. If we get another up day tomorrow, then we will be close to daily EMA resistance. A lot of technical damage has been done and one or two days of gains in the index's are not going to fix that. I don't have any set-ups tonight, I want to wait and see what happens tomorrow and then assess things. One think I do know is that at some point we will get another chance to short the market.
IWM, Russell 2000 index ETF, has sliced through it's 200 EMA on high volume.
DIA, Dow index ETF, still has not made it to it's 200 EMA.
QQQQ, NASDAQ 100 index ETF, is sitting right on it's 200 EMA.
SPY, S&P index ETF, has not made it to it's 200 EMA(green), but is sure heading that way.
GLD, Streettracks Gold ETF, has shot through it's daily 50 EMA(purple line) on large volume, never a good sign. Price will probably go down to the uptrend line or daily 200 EMA(green line). I will be watching price around those levels to formulate a plan of action.
USO, United States Oil Fund ETF, is in a nice uptrend now. Any pullback to EMA support and uptrend line shown will be a long set-up.
DIA (Dow Diamonds ETF) has not made it down to it's daily 200 EMA(green line). I expect this level to be aggressively defended by the bulls. If it can stabilize and move higher it will cause players like me to cover my short position, which I've had since 2/26. An inverse head and shoulders pattern is forming on the 60 min. chart. A break of the neckline and cross of the 60 min. 20 EMA(red line) will trigger a long for me. The price level I'm looking to go long at is around 110.66.
EEM is the iShares MSCI Emerging Mkts Index and one of my favorite ETF's to trade. It's trying to stabilize at it's daily 200 EMA(green line) after it's violent descent. I am looking for a bounce to the resistance levels which I've shown with red lines.
Drilling down to the 60 min. chart you can see a triangle pattern forming. A break of the triangle could start a rally to the resistance levels shown on the daily chart, then I would be looking to go short. The entry to go long would be around 110.30-60.