Bandit Broadcast for 6-2-2010

Good evening StockBandits!

The indexes had approached support with Tuesday’s selloff, but the buyers returned today to defend those zones, taking the indexes steadily higher throughout the session to post solid gains of more than 2% across the board. The NAZ led the way by making a multi-day high, while the S&P 500 and DJIA each approached the upper end of their 8-day trading ranges.

Two things have been severely lacking in this market lately – upside follow through, and heavy upside volume. While we will need to wait a couple of days to see if follow through arrives, today’s upside volume was evident once again with very underwhelming levels. If volume is the fuel that drives prices higher, then this market is in need of a fill-up. Nonetheless, support zones have been defended for now, so let’s see if the buyers can make a rare repeat appearance tomorrow.

In looking through the charts this evening, there still are a very limited number of setups out there to choose from. We’ve seen back-and-forth directional movement in recent days within this range, so the lack of follow through and the light volume is keeping things tricky for now. My plays for tomorrow are day trade candidates, so I’ll stick with my existing swing positions for now before looking to add any more overnight exposure.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday. Thank you for your patience with this evening’s late report as I’ve been tending to some other matters.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.