Tech Support
Market Update
The Charts
A brief look at the charts, starting with the two most important ones right now — SPY and DXY.
SPY is still testing technical support at the pivot highs from July. After trading near that level for three days, we’ll see if the Nonfarm Payrolls report tomorrow morning will be a catalyst for a resumption of the move higher.
If not, the 21-day MA and the pivot low AVWAP are near $562-$563 for potential support. If that doesn’t hold, the next levels are the 50-day MA and a previous pivot low AVWAP near $552-$553.
DXY While SPY is testing support, US Dollar Futures $DX1! are testing resistance. We’ve watched these two charts move hand in hand but inversely to each other all year. And the recent action isn’t any different.
For SPY to bounce and move higher, we’ll need to see the Dollar find resistance here at the 50-day MA and pivot lows from August and begin to move lower again.
QQQ has had similar consolidating action this week with the 21-day MA and pivot low AVWAP just below at $474-$475. The next support could come in at the 50-day MA, which is just barely beginning to curl upward.
IWM is below the 8 and 21-day MAs and is trying desperately to hold the 50-day MA. It still can’t get far away (and stay) from the $212 area.
DIA continues to be a leader and must remain above $416-$417 to maintain its momentum.
TLT is still heading lower and is beneath the 50-day MA.
BTCUSD chop, chop continues. Nothing to see here until it breaks out of the larger, longer-term pattern. Revisit the monthly chart analysis — Near And Far — for another look.
Again, Nonfarm Payrolls will be released tomorrow morning, Friday, October 4. The Federal Reserve closely monitors employment data as an indicator of economic health. So, the numbers are believed to have a significant impact on interest rate policy.
Unfavorable results, coupled with the typically Spooky month of October (read this from Jeffrey Hirsch and the Stock Traders Almanac for more on Octoberphobia), could continue to test stock prices.
Rather than attempt to predict, we’ll let the charts and the price action show us the way.
Elevate Your Trading
Education, training, and support for your Trading Adventure.
Options Trades - Weekly trade ideas are delivered to your email or text messages in language you can easily understand.
Check out EpicTrades from David Prince and T3 Live. Epic Trades from David Prince
Community - Are you an experienced trader seeking a community of professionals sharing ideas and tactics? Visit The Inner Circle, T3 Live’s most exclusive trading room - designed for elite, experienced traders.
The Inner Circle at T3 Live
Prop Trading - Or perhaps you are tested and ready to explore a career as a professional proprietary trader? 3 Trading Group has the technology and resources you need.
Click here to start the conversation:
T3TradingGroup.com
The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.