Technical Observations 11/7/12

Some quick observations about the markets

$SPY
-found resistance at prior support ~143.75
-also location of 50 DMA
-prior support zone of 140.50-141 now likely resistance
-test of 200 DMA ~138.24 seems likely over next couple of weeks
-guilty til proven innocent

$QQQ
-could not overcome 20 day MA and high from last week ~6625
-back below 200 DMA of 65.32
-testing 61.8% retracement of June low to September high ~64.10
-now below year to date volume weighted average price ~64.62
-guilty til proven innocent

$IWM
-clear pattern of lower highs and lower lows
-fell short of last week high near 83.00
-80.75-81.00 likely new resistance
-testing 200 DMA of 80.59
-50% retracement of June lows to September high ~79.99
-year to date VWAP of 80.10 being tested
-guilty til proven innocent

$SMH
-back below declining 50 DMA
-trying to hold prior resistance of 31.40
-daily chart is turning more neutral but with declining 50DMA it cannot be trusted

click chart to enlarge

If you like this article and want to learn more by getting access to premium content, click here »

Enjoyed this post?
Get the Free Swing Trading Guide, weekly market analysis, and occasional special blog posts.

x
Is Swing Trading the Perfect Timeframe?

YES, IT'S FREE