Wednesday June 24, 2009

Yesterday was was a choppy day and that is not unexpected coming off the largest percenatge down day we had in the markets in two months. The DJ-30 closed below it’s daily 50sma (resistance) and the SP-500 closed below it’s daily 50sma and daily 20sma (resistance). The QQQQ closed right above it’s daily 50sma (support).  I have one day buy signals for all three indexes today so I am looking for move up today.  We we were looking at the charts last night with David Elliott of www.wallstreetteachers.com he pointed out there were alot of nice set ups to the long side.

The McCllellan Oscillator T2106 closed down again -214 12 negative days in a row. Anything in the -200 or lower range is oversold on the daily charts. Remeber oversold can alsways become more oversold.

I will look to see if the DJ-30 and the SP-500 can recapture their respective daily 50sma’s and if the QQQQ hold their daily 50sma. This will then become support and I will go long with a defined risk to reward.

We have New home sales at 10 AM EST and the Federal Reserve releases notes from its meetings at 2:15 PM EST.

I will also include two possible long plays today that look pretty good with a break of the daily 50sma being a good stop IBM and Alcoa (AA – which was featured in our latest episode of Chart Attack)

**I have no positions as of this writing.