Thirty Minutes Before the Opening Bell 06/04/09

Happily for the bulls, the market closed yesterday above the May 7 high of 929.50.

929.50 is also the overnight support level. Overnight resistance is 938.75. The market is currently staying above 929.50 with help from a decrease in Jobless claims. Tomorrow morning we get the Employment Situation Report.

If the market follows the usual script, today should be a consolidation day, meaning that today's range should be smaller than yesterday's range. It would not be unusual for the market to test yesterday's low of 922.50. However, any expected improvement in employment could keep the market above 929.50. Another interesting resistance price is 939.50, which has been developing over the last few days.

Charles

End of Day Review 06/03/09

Chart illustrates the market's reaction to key pivot points.

Charles

European Close Review 06/03/09

At the 1100 ET bell, which also the last 30 minutes of European Trading, we got a bearish $TICK divergence to continue the down trend. The upward surge in the last ten minutes of European Trading was a surprise. Technology is starting to show some strength relative to the rest of the market.

Charles

First Hour Review 06/03/09

In the first 30 minutes, it look like the market might be able to trade up to the Pivot Line. Financials were strong relative to the rest of the market, and there was a $TICK divergence. However, selling in the rest of the market, espicially Energy, was just too strong. After the 1000 ET bell, the market continued the down trend. The market will be watching Bernanke the today and tomorrow.

Charles

End of Day Review 06/02/09

The primary support and resistance was yesterday's high and the 0930 ET open. When the market test key areas should as the previous high or low and the open price, possible trading opportunities present themselves. On its way from one area of support or resistance to another, look for 50% corrections.

Charles

First Hour Review 06/02/09

Pending Home Sales gave the market a jolt to the upside. However, both Financials and Energy Sectors are refusing to make a higher high relative to yesterday. Also, Monday's high is currently acting as resistance. The next four days in June are statistically bearish, so swing traders may be using the advance in the markets to unload long equity positions.

Charles

First Hour Review 06/01/09

According to the 'Stock Trader's Almanac", the first two days of June are statistically bullish, and the market is proving the statistics correct at least for today. The $TICK has made a higher high than Friday in the first hour of trading, which typically indicates a very strong day. This is not a day to try to fade any advance to the upside.

Charles