Why Tuesday Is Pivotal For The Market

(Click on image to enlarge)

Last Friday the market closed on a high note with a rally off the lows of 05/12.

This was a bullish sign, yet the rally also pushed prices into a resistance area.

The mixed sentiment from traders can be seen in today’s major indices with an inside day pattern found in the Russell 2000 (IWM) and the S&P 500 (SPY).

An inside day pattern is created when the total range of a price candle fits within the prior days' range.

This creates an easy way to watch for either a breakout or breakdown based on resistance/support from the prior days high/low.

However, a clean break over Friday’s high brings the market back into a choppy area, while a drop past Friday's lows would have investors looking towards the next key support area to hold from 05/12.

Additionally, the Nasdaq 100 (QQQ) has resistance not only from Friday’s highs but also from the 50-Day moving average found at $326.84.

As seen in the charts above this gives us key levels to watch for a break over with a clean support area to hold if bullish sentiment prevails.

ETF Summary

S&P 500 (SPY) Held the 10-DMA at 415.25.

Russell 2000 (IWM) Support 215. Resistance 223.17.

Dow (DIA) Like this to hold over 342.43.

Nasdaq (QQQ) 326 resistance.

KRE (Regional Banks) 71.82 resistance.

SMH (Semiconductors) 233 pivotal area.

IYT (Transportation) 282.40 resistance.

IBB (Biotechnology) 147.11 support.

XRT (Retail) 96.27 resistance.

Volatility Index (VXX) Failed to break over Friday’s highs at 41.50.

Junk Bonds (JNK) 108.55 support the 50-DMA.

XLU (Utilities) Next support the 50-DMA at 64.68.

SLV (Silver) Needs to clear 26.28.

VBK (Small Cap Growth ETF) 258.32 support with main support the 200-DMA at 254.10.

UGA (US Gas Fund) 34.68 resistance area.

TLT (iShares 20+ Year Treasuries) 135.00 support area.

USD (Dollar) Watching to hold 90.00.

1 2
View single page >> |

Disclaimer: The information provided by us is for educational and informational purposes. This information is based on our trading experience and beliefs. The information on this website is not ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.