Index Watch for September 8, 2009:
Index Charts
S&P 500 Index ($SPX) -- On the 60 Minute Chart, there will be minor resistance at the R/S and the Stick Highs of 1040 with support at the potential Neckline. I was having a difficult time getting a read on the Daily Chart so I cleaned it up. The key S/R levels are updated.
Nasdaq 100 Index ($NDX) -- It caught a bid at the Neckline on the 60 Minute Chart. In the short term, it's going to run into minor resistance at the R/S and the Stick Highs with initial support on another test of the Neckline (i.e. 2nd test). The Daily Chart looks the same as last week, but I updated the key S/R points. On the Weekly Chart, the downward sloping trendline continues to hold the price down. At some point in the near term, I think it's going to break over. When it does, it will likely explode up for a test of "former" trendline support, which appears to be in the 1680 area. That would be a good spot for intermediate term traders to take initial profits on any open long positions. If you want to be a pro, you have to trade like a pro, meaning you sell strength and you buy weakness.
Bank Index ($BKX) -- On the 60 Minute Chart, resistance will be found at 46.50 and 48.20 with support at 43.50. The Weekly Chart is the same as last week.
Dow Transports Index ($TRAN) -- Resistance on the Daily Chart will be found at 3810 and 3890 with support at 3550 and 3425.
Gold Index ($GOLD) -- I've included the Daily and Weekly charts.
Gold Bugs Index ($HUI) -- I have the Weekly Chart posted. I missed the move up with the miners, but I hope to capture something should it fall back. It's moved over the R/S, but I intend on sticking with it short for a swing trade as long as it stays under the upper trendline in the Wedge. In other words, I'm short resistance. If resistance fails, I'm out. Clean and simple. At some point, I'll go long but it's going to be at an objective support level before I do. I don't have the mental capacity to trade the metals on a breakout.
Silver Index ($SILVER) -- This is an updated Monthly Chart. It still appears to be in a massive H&S topping pattern and is currently at a spot to take "low risk" short positions. A thrust over the R/S suggests a potential move to the highs and is a signal to exit.
Crude Oil Index ($WTIC) -- If this doesn't lift in the next day or three on the Daily Chart, trendline support will likely fail, which suggests a move to the $55.00 area. I've included the Weekly Chart to provide another view.
Natural Gas Index ($NATGAS) -- A complete failure at trendline support on the Monthly Chart, which suggests further weakness. Remember, thieves who try to steal from the market are usually caught as a result of their greed. In other words, I intend on waiting for it to set back into something objective and tradeable before doing it again.
S&P 500 Index ($SPX) -- On the 60 Minute Chart, there will be minor resistance at the R/S and the Stick Highs of 1040 with support at the potential Neckline. I was having a difficult time getting a read on the Daily Chart so I cleaned it up. The key S/R levels are updated.
Nasdaq 100 Index ($NDX) -- It caught a bid at the Neckline on the 60 Minute Chart. In the short term, it's going to run into minor resistance at the R/S and the Stick Highs with initial support on another test of the Neckline (i.e. 2nd test). The Daily Chart looks the same as last week, but I updated the key S/R points. On the Weekly Chart, the downward sloping trendline continues to hold the price down. At some point in the near term, I think it's going to break over. When it does, it will likely explode up for a test of "former" trendline support, which appears to be in the 1680 area. That would be a good spot for intermediate term traders to take initial profits on any open long positions. If you want to be a pro, you have to trade like a pro, meaning you sell strength and you buy weakness.
Bank Index ($BKX) -- On the 60 Minute Chart, resistance will be found at 46.50 and 48.20 with support at 43.50. The Weekly Chart is the same as last week.
Dow Transports Index ($TRAN) -- Resistance on the Daily Chart will be found at 3810 and 3890 with support at 3550 and 3425.
Gold Index ($GOLD) -- I've included the Daily and Weekly charts.
Gold Bugs Index ($HUI) -- I have the Weekly Chart posted. I missed the move up with the miners, but I hope to capture something should it fall back. It's moved over the R/S, but I intend on sticking with it short for a swing trade as long as it stays under the upper trendline in the Wedge. In other words, I'm short resistance. If resistance fails, I'm out. Clean and simple. At some point, I'll go long but it's going to be at an objective support level before I do. I don't have the mental capacity to trade the metals on a breakout.
Silver Index ($SILVER) -- This is an updated Monthly Chart. It still appears to be in a massive H&S topping pattern and is currently at a spot to take "low risk" short positions. A thrust over the R/S suggests a potential move to the highs and is a signal to exit.
Crude Oil Index ($WTIC) -- If this doesn't lift in the next day or three on the Daily Chart, trendline support will likely fail, which suggests a move to the $55.00 area. I've included the Weekly Chart to provide another view.
Natural Gas Index ($NATGAS) -- A complete failure at trendline support on the Monthly Chart, which suggests further weakness. Remember, thieves who try to steal from the market are usually caught as a result of their greed. In other words, I intend on waiting for it to set back into something objective and tradeable before doing it again.
