Thursday, October 28, 2010

Daily Support Holding Leadership Rotating

Daily support continues to hold. S&P 500 ($SPX) is clearing holding -



The Russell 2000 (TF Z0-240-min) has been sitting in a 2-week trading range. I like setups like this, because they offer close stop losses to help me manage risk. Resistance must be cleared to get me interested.



The NASDAQ 100 (NQ Z0-240 min) will gap up this morning and open in the resistance area.



US Treasuries (ZB Z0-D) are now in a trading range and near support with timing coming in next week. This will be worth watching as the Fed announces some version of QE2 on Wednesday.



Many leaders have been pulling back the past 10 days. The money continues to rotate and that is very bullish. You can see that enough money flowed into Semiconductors to break them out above a 6-month trading range.



The Gold Stock ETF (GDX) has pulled back the old breakout level and has been holding the 50-day for the past few trading days. There are some pretty obvious stop loss levels here.

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