This morning, we discussed the potential head and shoulders top that might be forming on the daily charts of the S&P 500 and the Dow Industrials.
I just made this new panel of charts, and the volume that is being plotted is from the associated ETF. For example, the volume for $INDU is from DIA, while $SPX.X is from SPY and $NDX.X is from QQQ. I think this gives us a pretty good picture of volume.
As discussed, for the Dow Industrials and the S&P 500, the only way to stalk a move down to break a potential neckline below is to have sell stops here on this tiny upswing. The place to put it on a swing trade basis is under yesterday's low with the initial stop loss just below yesterday's high. Again, you can use the intraday entry if you like. Another strategy is to trade S&P futures intraday to capture bits and pieces of any move, since it offers higher leverage to compensate for the smaller timeframe.
It's going to be a little tricky today, since we do have some more earnings coming, notably from CSCO after the close, but that's what we've got to work with.
04.02.03 11:59 #