Monday, March 22, 2010

Futures Point to a Lower Open...

10:00 am EDT - U.S. did not follow the overnight trading direction...after opening lower due to futures trading...markets are rallying...SPY down 4 cents...QQQQ is up 24 cents...DIA is up 4 cents...IWM is up 2 cents...other stocks also higher this morning: BA, ESI, ALGT, PCLN, DEC, USD, SNDK, NFLX, BDX, UAUA, VAR, GME, PCP, HANS, FUQI, SW, V, VPRT, DHR, WMT, K, SYNA, MYGN, GR, FLS, DE, SPG, MHS


BMO – ES -8.00 and NQ -11.75 futures are lower in pre-market trading pointing to a lower open. AAPL -1.60, AMZN -0.62, GOOG -3.19 and BIDU +0.18 are mostly lower in pre-market trading.

At the open we want to see if  the U.S. markets also trade to the downside. At times the U.S. markets reverse the direction of overnight trading shortly after the open, so watch for this and trade accordingly.

This may be the beginning of the potential pull back we were talking about last week, so be prepared and protect yourself according to your rules.

Biotech stocks were among the strong NASDAQ stocks on Friday. Following Sunday’s passage of the healthcare bill, watch etf’s like XLV, BBH and XBI for a sense if traders are reacting negatively. It may be that this was already factored into the price. Watch support levels and the trend.

Wednesday through Friday is the high day on many charts.  Watch for a break of the low of the high day or short term support.

The Euro is down 64 pips in overnight trading. Oil is quoting down 1.37 in electronic trading. XLE is down 66 cents in pre-market trading.

SPY is down 66 cents in pre-market trading. XLF is down 15 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts
(click image to enlarge)

SPX
Support = 1,150, 1,139
Resistance = 1,178

Trading Down: FCX, POT, MOS, IPI, AGU, V, X
Trading Up: BA, GME

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –



1 comment:

Unknown said...

Great insight this morning Dave!! Thanks for keeping us apprised of the technical analysis, as well as, the "potential" early reversal in US markets.... Very, very helpful!!

Many thanks Dave!!
Mishel