Financial Strength Leads Markets

Hey folks! Welcome to Market Intraday Analysis by inthemoneystock.com, your leaders in pure technical analysis avoiding all that Wall Street hype. Today Thursday, August 28th 2009. Well folks, we’re seeing a muted up day on Wall Street, the S&P up about seven and a half, the Dow was up about 42 and the Nasdaq is up about 12 on the day so a little bit of an upside day to day, very, very minor light, light volume today folks, on pays to be one of the lighter days of the year in volume. This morning, we got some economic news out. I'm going to cover that quickly. I want to go over the key levels and the charts to watch for the remaining portion of the day. Now, what are we watching today, first of all as the morning came into—right into that 08:30 time frame, we obviously had to know what was going on in Asia the night before last night. Asia had a nice rebound; we have called for a bounce in China. China bounced 5% last night 4 to 5%, great solid balance alright so get on there. Now, couple other things to watch for, we watch the Nikkei and the Hang Seng to try and get gauge of where the Asian markets were going to be. And the Asian markets did bounce last night as well, so that gives the initial fuel to the fire for the US markets. Then today at 8:30AM Eastern Time, the jobless claims numbers came out, now they were not as good as expected. So, jobless claim is not as good, you actually saw the future spike down pre-market and I can quickly throw off that chart to show you what went on there. Here is your future spike, this is 8:30PM right here, 8:30AM excuse me, future spiking lower and then really what happens is as soon as the volume dies out into the open, the mortgage reverse back to the upside and start to gain their traction back on the open. We’ve been seeing that very, very often where any downside for instance yesterday the market’s got lower and then just a buy program hit and they were taken directly up. Same type of deal today, the dollar being a key component again. The market is actually open down slightly on the day and then the dollar gapped up slightly and then the dollar started to fall. As soon as the dollar starts to take down a little bit back to the flat line to the negative of a penny or two on the UUP and I can show it to you here. Here’s the UUP folks, look at this, just a gentle move down in the UUP all day. Not that it is down much, it’s down three pennies across the board but that’s really enough to just cause the markets to inch up a little bit and you can see that just a flow higher on the markets now side ways action. Now, so the jobless claims were not quite as good as expected but we also got leading indicators and fully fed numbers out today and those numbers actually coming out a little kind of in line with expectation. So, it doesn’t take much to lift this market. Remember, August doldrums right now, the markets in the lightest month of the year. Whenever you have light volume, you always give a small upside buys in the markets. That means middle of the day, sideways to upside buys early on upside buys into the close upside buys generally give that little bit of a positive buyers, unless there is a major event that’s causing the markets to react negatively which in turn would cost more volume, when you get more volume the markets don’t necessarily always go higher or sideways. So, that explains pretty accurately what we’re seeing here today. Now again, so the economic numbers today is not that great but the market is very much into ignoring the negative and focusing on the positive. I guess that extenuates the positive, eliminate the negative it would apply here and that’s what's going on these markets now. Does that continue into September when volume comes back after Labor Day, that’s going to be the big question you really have to be watching for. Now, couple levels to watch here I want to focus on some, we’re just hitting a major, major level in this market right now, number one it’s this 100 Spot 75 level. Now, the master level we had talked about in the previous two to three weeks that these markets have been all around, has been a 100 Spot 85 but in fact a100 Spot 75 turned out to be just earlier this week going back to last Friday a major level. Here is a 100 Spot 75 right here was the closing level before the Monday gap down. This was Monday’s gap down, an ugly day. So, that level at a 100 Spot 75 to a 100 Spot 85 is a very, very key master area of 10 cents on the spiders. So, really from here all the way up to this a 100 Spot 85, very, very master level in this market. So, what you can see right now is the markets are really just hovering in that range. That’s telling you there is a support right there at a 100 Spot 75. In addition, if you connect these loads going back from the 19th which was yesterday to the secondary loads right here and right up you can see right on this level. So, a 100 Spot 75 right now is a master, master point on this market that needs to be broken if you're going to see anymore downside. If it’s not broken folks, you're not going to see downside and you could very well go higher because why? Light volumes, simply put light volumes gives you an upside buys unless you can break this key levels and that of course increase in volume in which case the market is going to fall. All right, so watch this again, you’re off taking right after touching this green line here, in addition to a 100 Spot 75 line goes right across. So, you take this one and the sideways one they create a necktie right there with the 20 moving average that’s a very, very impressive solid support line on the markets, sure enough you're getting a little bit of a bounce just as we talk about it back towards this a 100 Spot 85 level. So again, right here guys, this is your master level you're really following in the afternoon session. I'm going to draw an X right through it so you guys can see it accurately. This little level right in here between here is big, if you break to the downside here then you could see actually a fall all the way back down to the 50 moving average, which would also be at a key trend line in about 100 Spot 30 on the chart, 100 Spot 30 which would match up with the highest from yesterday right here. So, that would be your next level, if you were to break down here in the afternoon session this would be your target. If you take that out then you're going to now look for basically the flat line on this market which was the close yesterday and 100 even number, give or take about five cents. Okay, those are your master levels to the downside to watch for the rest of the day. On the upside if you take at a 100 Spot 85 the next level would be 101.05, after that 100.50, excuse me 101 Spot 50. So again, 101.05, 101.50 would be next level if you take out this 100 Spot 85 levels in the market, very, very important levels to watch here guys. Now interestingly enough folks we’re hovering right just on the negation of Monday’s move that’s all we've done all week. We've been basically up three days after Monday now but all we've done is recapture Monday’s lost and I have show you guys that again by going back to Friday, where did the market close on Friday right here at a 100 Spot 75, 100 Spot 76 right in this level right here and sure enough that’s exactly what we’re trading right on top of right now. Just by a couple of pennies about five cents above that level right there, here we are trading right here. So, you’re really just seeing a negation of Monday’s moves in three days, really could be consider all inside bars but we’ll see where we close today to really know more about this market. Now, couple of things guys, yesterday we talked about the dollar getting hit and that was a major cost for the rally yesterday where we were up on a nice solid update yesterday. Today, it’s not necessarily the dollar; the dollar is a little bit weaker but only by about three pennies on the UUP. The real catalyst today is financials folks. Financials are ripping left and right. Financial were left out of the rally yesterday but today are leading the rally on the upside. JP Morgan up a dollar, look at this chart on JP Morgan straight up, Goldman Sacks, look at this move straight up at the highest in the day right now. Bank of America monster move, even AIG folks, AIG have a monster move up. By the way huge scowls in the chat room today on Scalps one of them was AIG at $35.00 resistance. Guess what the exact high on the AIG was today before it pulled back $2.75 to current levels it was $35.00 on the button nailed that to the penny today in the chat room, just one about five or six Scalp Calls early on in the markets. And look at the fall on the AIG since then, still AIG up huge it’s still at five and a half dollars on a day, a monster move but bottom line is if you can read the charts you can dodge a wrench, you can dodge ball right. For those—I have watched that movie there it is but again essentially you can read the charts, you make profits, that simple. All right, if you can read the charts you can make profits. All right folks, that’s the little headline on what's robbing this market up today, otherwise Exxon Mobils having an “Okay day” at 43 cents but the USO which is oil is actually down 31 cents. You're seeing oil slightly weaker today; the GLD is slightly lower as well down 24 cents. The dollar again is basically flat down about four cents, three cents on the day just a minor, slightly take lower on the overall dollar. Dow was up 50 points, S&P up about eight and a half right now, Nasdaq up 15, we've uptake a little since we started the video. Just a couple other notes here you guys. You can see this level a 100 Spot 85 is going to be resistant, if you get through that watch for your 101.05 level on the upside after that 101 Spot 50 on the downside. You got to take out this green line and then once you take out the green line, you have to close below 100 Spot 70 to 75, that’s going to be major. If you can get below that then you have the chance of hitting the 50 moving average and possibly moving down to about a 100 Spot 30, a break of that would bring you back to a 100 and then a break of that could even bring you beyond to the 200 at around 99.75 on the SPY. All right folks, that’s what was seeing right now on the chart just too quickly look at the 60-minute chart. Another key level here as well guys take a look, take this line right here connect it through the highs and look at what you have. Very, very important level connected back from the height 102 to the highest here on the 13th, 14th of August and then look at what's keeping this on the wrap, although this is on a 60-minute and a nice consolidation pattern possible—consolidation pattern, we’ll see if it fails because of this trend line on the 60-minute but that’s a master trend line. Please look at that one that’s a major, major one in regards to this market. All right folks, that’s about it for today. Just a reminder, come join the research center, come join the research center and get hot charts and alerts. Feel free to watch us 30 to 40-minute videos every night. Hidden Gems, Technical Tactics, Daily Market Reports, all that’s include for $49.99. 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