--> S&P, Nasdaq, and Dow Support / Resistance Levels ($DIA, $SPY, $QQQ)

S&P, Nasdaq, and Dow Support / Resistance Levels ($DIA, $SPY, $QQQ)

ETFs and market commentary:

Stocks edged higher on Monday amidst light trade. All five major indices closed higher on the session, as the small-cap Russell 2000 led the advance by posting a 1.2% gain. Led by a strong showing from AAPL, the Nasdaq advanced 0.9%. The S&P 500, S&P MidCap 400 and Dow Jones Industrial Average closed up by 0.7%, 0.5% and 0.4% respectively. The precious metals, insurance and computer hardware sectors outperformed the market on Monday, while homebuilders showed the most relative weakness.

Market internals ended the session mixed. Volume fell on the Nasdaq by 1.1% and on the NYSE by 7.8% compared to Friday’s numbers. Advancing volume did however hold the upper hand for the entire session. By the closing bell the spread ratio closed at a plus 3.8 to 1 on the NYSE and a plus 2.2 to 1 on the Nasdaq. Although the market closed higher yesterday, the light volume suggests that institutions were not participating heavily in the day’s action.

Listed below are the key support and resistance levels in the broad market averages (daily and weekly charts of the DJIA, Nasdaq and S&P 500). Yesterday, the Dow Jones Industrial Average set a new 52-week intraday and closing high. However, the DJIA was unable to break out of its three week trading range and the move occurred on light volume. We wouldn’t be surprised to see a failed breakout at the 13,300 mark if the Dow is to move to significantly higher ground. If the Dow can take out the 13,300 mark, the next big resistance is near 13,800 (see weekly chart). Support levels on the DJIA include the 20-day EMA (13,120), the 50-day MA (12,950) and the swing lows at 13,030 and 13,000.


The Nasdaq has led this current leg of the rally higher. However, unlike the DJIA and the S&P 500, the Nasdaq failed to establish a new 52-week high yesterday. This price action may suggest that the Nasdaq needs to consolidate and “take a rest” prior to a potential move higher. The Nasdaq faces short term resistance at 3,134 and has support near 3,070 and 3,040. On the weekly chart you will notice that the Nasdaq is the only index that has cleared its 2007 high. Further, the Nasdaq is currently at an 11 year high. The next major resistance level on the Nasdaq is near 3,530 (see weekly chart).


The S&P 500 attempted to break through resistance at 1,420 yesterday but it fell just short as it closed just below this key mark. Short term support levels on the S&P 500 include 1,392 and 1,387. If the S&P manages to clear the 1,420 level, its next key resistance is near 1,440 (see weekly chart).


Both EPU and IYR performed well yesterday. EPU raced higher on a big spike in volume. IYR also saw higher volume but lower than average volume. Both ETFs closed at session highs. UWM formed a bullish engulfing candle on a significant uptick in trade. UWM also closed near session highs. After gapping down and undercutting its 20-day EMA, UGA stormed back to also finish higher on the day, but on lighter volume. UGA also formed a bullish engulfing candle.

Today’s ETF Watchlist:


Daily Performance Report:

Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 Wagner Daily model account size. Changes to open positions since the previous report are listed in red text below. Please review the Wagner DailySubscriber Guide for important, automatic rules on trigger and stop prices

position summary

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • No trades were made. 
  • Reminder to subscribers – Intraday Trade Alerts to your e-mail and/or mobile phone are normally only sent to indicate a CHANGE to the pre-market plan that is detailed in each morning’s Wagner Daily. We sometimes send a courtesy alert just to confirm action that was already detailed in the pre-market newsletter, but this is not always the case. If no alert is received to the contrary, one should always assume we’re honoring all stops and trigger prices listed in each morning’s Wagner Daily. But whenever CHANGES to the pre-market stops or trigger prices are necessary, alerts are sent on an AS-NEEDED basis. Just a reminder of the purpose of Intraday Trade Alerts. 
  • For those of you whose ISPs occasionally deliver your e-mail with a delay, make sure you’re signed up to receive our free text message alerts sent to your mobile phone. This provides a great way to have redundancy on all Intraday Trade Alerts. Send your request to [email protected] if not already set up for this value-added feature we provide to subscribers.

Stocks:

PCYC and ZNGA remain on the watchlist and are poised to trigger within the next few days. TSLA remains in pullback mode and is proabably headed to the 20-day EMA. FNT and URI were strong performers yesterday, breaking out from basing patterns on a pick up in volume.

 

For those of you who are new subscribers please contact me at [email protected] if you have any questions regarding strategy, money management, or how to make the most out of this report.

Today’s Stock Watchlist:


Daily Performance Report:

Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 model account size. Changes to open positions since the previous report are listed in red text below.

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • Per intraday alert, we raised the stop on half of the REGN position (REGN is listed twice due to the split stops).


Relative Strength Watchlist:

The Relative Strength (or RS) Watchlist makes it easy for subscribers to import data into their own scanning software, such as Tradestation, Interactive Brokers, and TC2000. The list is comprised of the strongest 100 (or so) stocks in the market over the past six to 12 months. The scan is based on the following criteria and is updated every Monday:

  • Stock is in a well defined uptrend, trading above both the 50-day and 200-day moving averages, with the 50-day moving average above the 200-day moving average (both moving averages should be in an uptrend as well).
  • Today’s close is less than 20% off the 52-week high
  • Close is greater than $5.
  • Volume is greater than 200,000 shares per day (using a 50-day volume moving average).

Click here to view this week’s Relative Strength Watchlist in excel

Click here to view this week’s Relative Strength Watchlist as a text file

Follow us on Twitter

Latest Tweets

@MorpheusTrading