Yesterday's focus list said that after 2 days of compression we should expect a good trend day. Well, we got it. And you need only to look at.
After a good range day you can really focus on trader pivots for highs and lows, and we've got some really interesting support and resistance levels to trade tomorrow.
For resistance all the market watch (SPY, QQQ, DIA, IWM) are at the top of their 4 day range which is the beginning of a significant gap from 8/18. They are also sitting right at the 10-day moving average and the 50-period moving average on the 60 min chart. This is a significant inflection point which if broken could lead to the gap being filled quickly (a quick rally). So today's highs will be very important levels tomorrow.
After a big trend day, the 1-day pivot (floor trader pivot) is a good area to expect any intraday correction to hold. Tomorrow that level will line up with the high of the day from yesterday - another very important price level that I talked about in a recent training video.
Sum it up and simplify it and you have today's highs and tomorrow's FTP as your two points to use for very important inflection points. With a positive pivot stack, long OR reversals and breakouts could be a good bets tomorrow for longs.
It's also worth noting that all 4 market watch charts closed above the 3-day pivot high for the first time in this recent decline. This means an OR breakout and move above today's high would put the market's in a 3-pivot bullish bias condition.
For shorts look out for any stock below S1 or today's low.
Here's our focus list.
Long Focus
QQQ
IBB
SMH
USO
SINA
SPG
JAZZ
BIIB
IBM
WYNN
BIDU
CLB
YOKU
AAPL
HANS
ORLY
Short Focus
SLG
BTU
HAL
URBN
LLL - this is very compressed and could go either way big.
