Day Trading the major Indexes and the S&P500 emini futures.
Looks like we are preparing to hand the $380 billion dollars that the Fed has used to support this market. Market Makers are about to move in and blow support on many of the indexes.
Watch as the Government pushes the markets around. Market makers are ready to take advantage of this with some sell volatility into these supports. Watching for an increase in Volume on sell side.
First support on the Ascending support trend line has been tested, and if the Government does not take some action and fund the budget we will see some selling at this level to the next area of support. You can see three extensions on this move down.
AT 1620 on the S&P500 emini we will run into support on the 200 MA, if this broken, watch for increase of seller volume and a move to 1560. Below 1560 is a major correction support at 1480. This would be major correction and take out most of the Fed supported move with some $380 billion dollars of bonds. Market makers will be shorting into this move in the futures.
Day trading AAPL watching as Nasdaq heads down as Apple makes up 20% of Nasdaq trading volume.
Apple (AAPL) is showing weakness as it heads into the first major support at $626 . Watch for consolidation at this level as price has come to the first major supporting trend line.
If price breaks through this level then the next area of support is $582 then an extreme sell off to $520.
It looks like we could see some support coming into $5400-60 area as this is the are of consolidation for the breakout from the inverted Head and Shoulders from May of this year.
Seasonally, this is when we start to see a rally begin, and pre election we could begin to see this sell off hit support and then rally into the elections. Maybe the markets could see more selling into the election as a sign that the excessive spending is not supported any more and that the quantitative easing is not effecting the major inputs for a healthy economy.
One positive side we could see in this era of price inflation, if the dollar weakens more stock prices do normally have the tendency to go higher. This also means we will have higher gas prices, commodities prices and unemployment going higher as inputs for smaller business increase.
Facebook stock is reaching it’s 50% off price from the IPO.
Facebook FB Ipo price of $38 has plummetted to $20 level in today’s trading. As mentioned before in a previous Facebook Stock article, Professional traders will more than likely short this stock to 50% of IPO price then look for a settling price for support and buy back.