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A big rally on Friday left the indexes each positive on the week after having continued their pullback off the recent highs.  Thursday’s reversal off the low found more buyers ahead of the weekend with a jobs report that didn’t disappoint and another potential higher low on the daily charts.

As we head into a new week of trading, it’s time once again to take a look at the indexes and the key levels they’re dealing with. This will impact how individual names move, so it’s where every new trading week begins.

NAZ – The NAZ saw a sharp bounce off the Thursday morning low which nearly tested the unfilled gap from early May.  The rebound was marked by strong finishes both Thursday and Friday, leaving this index just above the middle of the range.  Stay on your toes out there as follow through right now is fleeting.

Why I Use TC2000

 

SP500 – The S&P pulled back into Thursday morning to within 1 point of the 1597 level I’ve highlighted previously.  That was resistance in April which gave way to the May breakout, and also coincides with the uptrend line off the November low.  That convergence plus a pullback of roughly 5.3% provided enough incentive for the bulls to step in and put cash to work once again.  How far this bounce carries will tell us quite a lot in the days ahead.

Why I Use TC2000

 

RUT – The RUT undercut the trading range low of 970 last week on Wednesday, but immediately reclaimed it on Thursday and moved higher on Friday to push back toward the center portion of the trading range.  970 is the downside zone to watch, whereas 1008 is upper resistance.

Why I Use TC2000

 

DJIA – The DJIA briefly undercut former resistance at 14887 on Thursday, spending only about an hour beneath it before reclaiming it with a sharp bounce.  The lift into Friday’s close from Thursday’s low was over 400 points, putting into perspective just how sharp the lift was.  Nonetheless, this index remains another 300 points shy of a new high and if this bounce stalls it could create a lower high.  For now, the uptrend remains intact.

Why I Use TC2000

 

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Trade Like a Bandit!

Jeff White

Follow @TheStockBandit

Last week ended with some hard selling, particularly in the final half hour on Friday.  That resulted in trading range breaks to the downside for both the S&P 500 and DJIA, while the RUT and NAZ were able to hold inside their respective ranges. Was it merely pre-weekend worry or a sign of more selling to come?

As we head into a new week of trading, it’s time once again to take a look at the indexes and the key levels they’re dealing with. This will impact how individual names move, so it’s where every new trading week begins.

NAZ – The NAZ has 33 points of room on the downside before it would break this trading range to the downside, although on a closing basis Friday constituted the lowest close since May 14.  A hard break below this range invites a gap fill from early May.

Why I Use TC2000

 

SP500 – The S&P undercut 1635 support on Friday, and now the next level to watch is former resistance at 1597.

Why I Use TC2000

 

RUT – The lowest RUT close since May 14 is 982, and on Friday it finished just 2 points above that level.  Intraday support was recently found at 970, giving this index a bit of room for now.  Should we see a breakdown there, 954 will be next.

Why I Use TC2000

 

DJIA – The DJIA suffered its worst decline on Friday since April 15th and also broke below its trading range.  There’s about 230 more points of room on the downside before next support would be found.

Why I Use TC2000

 

Take a trial to our Stock Pick Service to get our trades.

Trade Like a Bandit!

Jeff White

Follow @TheStockBandit