Wednesday, February 25, 2009

Higher Low?

Good Morning everyone. So yesterday's breakout came to fruition. After the S&P broke 758, it preceded to rally up to the prior day's high at 774.
Despite puking up most of yesterday's gain this morning, the 30 min. chart has put in a higher pivot low implying that we still have an intraday uptrend intact. Consequently, we could still see a continuation of a bounce up to resistance on the daily chart. Breaking 752ish would break the uptrend- so keep an eye on it.


KrengelFamily said...

I really wish you were a DOWist lol. I've mostly been following that one, and only a little on the S&P and NASDAQ. I know that many prefer the S&P to get a gauge of the broader markets, but which do you think holds bigger psychological barriers (support/resistance)between the indices?...the smashing of the 7500mark to me was a big signal that seemed much more played out at least in the media than the drop below 800 on the S&P. I'm still pretty new, so mostly looking for different opinions.

Tyler said...

There's definately room for personal preference on which index to follow. I follow all three but focus primarily on the S&P because:
1. I trade it
2. It's a broader/better representation of the overall marke than Dow imo.
That being said, I would pay more attention to the Dow if I was trading one of the stocks in the index. I'd also focus on NDX when trading Tech.
They all tend to move in tandem anyways- but when they diverge it can tip you off to areas of relative strength or weakness. Although the media focuses more on the DOW, I'd say individual traders prefer the S&P. I'm the type that will fade what the media does/says 98% of the time anyways!


Higher highs lower lows.