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I'm ready for the Opening Bell...
Thanks to the Support & Resistance Report .
Hi mokew,
Somtimes there's just not enough time in the day 
Buy at 'Gathering Support' ... Sell at 'Gathering Resistance'...
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance.
Knowing where these areas are located helps them to determine when to buy and when to sell.
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QQQQ - Thursday's 5-Minute Chart...
The QQQQ rose in early trade to test Resistance at last week's high ($44.47). After printing a high of $44.40, it pulled back to test Support in the vicinity of $44.00 before closing at $44.02.
Thursday's 5-Minute Chart (below) shows the details.
On Friday, $44.00 represents a pivotal line for the QQQQ. That's because no less than 4 individual aspects of Support/Resistance have converged at that very number.
It may help, therefore, to think of $44.00 as the 50-yard line on a football field. Above that line, the bulls have the edge. Below that line, the bears have the edge...and so it will remain until either the bulls or the bears breakout of the trading range within which the QQQQ has been confined for the last two-and-a-half months.
QQQQ - Monday's 5-Minute Chart...
The QQQQ spent Monday splashing beneath it's substantial area of Gathering Resistance.
Monday's 5-Minute Chart (below) shows the QQQQ rising at mid-day to within a stone's throw of Gathering Resistance , then pulling back at the sight of it.
On Tuesday, the QQQQ remains in the dog-house below its 50-Day Moving Average ($44.02), the Middle of the 10-Week Trading Band ($44.00) and a Double-Top Breakout ($44.00) that may be failing.
It will react at 10:00am to the Consumer Confidence Report.
Wednesday, however, will be the big day for economic reports:
1) 8:30am - Fourth Quarter GDP
2) 2:15pm - FOMC Decision on Interest Rates
Both reports will be market movers.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:
QQQQ - Friday's 5-Minute Chart...
After printing a new low for the week at $43.29, the QQQQ recovered from that low and spent the remainder of the day within a 30-cent trading range.
Friday's 5-Minute Chart (below) shows the details of a day in which the QQQQ neither rose to an area of Gathering Resistance nor fell to an area of Gathering Support.
On Monday, the QQQQ remains in the dog-house below its 50-Day Moving Average ($44.01), the Middle of the 10-Week Trading Band ($44.00) and a Double-Top Breakout ($44.00) that may be failing.
As long as the QQQQ remains below what is now an area of Gathering Support beginning at $44.00 and extending to $44.10 (for Monday's Trade), the bears retain an edge and a test of the low end of the two-and-a-half month trading range ($43.00 - $42.52) remains in the cards.
A capture of the 5-member area of Gathering Resistance between $44.00 and $44.10, however, would suggest that the bulls have the ball and are running with it.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button.
A list of individual aspects of Support & Resistance that converge to form areas of Gathering Support and Gathering Resistance may be found here: Individual Aspects of Support & Resistance
QQQQ - Thursday's 5-Minute Chart...
The QQQQ closed back below the combination of its 50-Day Moving Average and the Middle of the 10-Week Trading Band on Thursday and did so on increasing volume.
Thursday's 5-Minute Chart (below) shows that the sell off in the QQQQ was stopped only by the day's area of Gathering Support between $43.58 and $43.60.
On Friday, the QQQQ is back in the dog-house below its 50-Day Moving Average ($44.00) and the Middle of the 10-Week Trading Band (also $44.00). That puts Wednesday's rally in the category of "giant head-fake". It also makes a test of Support at the lower end of the 2-month trading range ($43.00 - $42.52) more likely.
Rising interest rates are given the blame for Thursday's weakness. The Weekly Chart of the QQQQ (on display at my StockCharts.com web site) shows the relationship between long-term interest rates and the QQQQ (Comments regarding the relationship appear below the chart).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:
QQQQ - Wednesday's 5-Minute Chart...
The QQQQ gapped up at the open on Wednesday and after doing battle for more than an hour with Gathering Resistance at $44.00, Resistance was captured which opened the door to an impressive rally.
Wednesday's 5-Minute Chart (below) shows the struggle with Gathering Resistance at $44.00, the eventual capture of that Resistance and the subsequent rally that proved strong enough to capture the day's second and less imposing line of Gathering Resistance at $44.17.
On Thursday, the QQQQ may present traders with another gap-up open based on favorable reaction to several earnings reports that were published after the market closed.
Wednesday's recapture of Resistance at the 50-Day Moving Average ($43.98) and the Middle of the 10-Week Trading Band ($44.00) represents a short-term positive for the QQQQ.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:
QQQQ - Monday's 5-Minute Chart...
The QQQQ demonstrated severe weakness on Monday by violating yet another significant area of
Gathering Support.
Monday's 5-Minute Chart (below) shows the QQQQ slicing through a 5-member area of Gathering Support that included the 50-Day Moving Average and the Middle of the 10-Week Trading Band, both of which are significant in that they represent intermediate-term aspects of Support.
On Tuesday, it will be important for the QQQQ to capture what is now Resistance at the combination of its 50-Day Moving Average ($43.94) and the Middle of the 10-Week Trading Band ($44.00). That's because many fund managers treat two consecutive closes below either of these two aspects of Support as a "Sell" Signal.
QQQQ - Friday's 5-Minute Chart...
The QQQQ spent Friday testing Gathering Support between $43.87 and $43.95.
Friday's 5-Minute Chart (below) shows two separate bounces from Gathering Support.
On Monday, the QQQQ is not out of the woods. It must continue to find Support at the combination of its 20-Day and 50-Day Moving Averages whose values are in close proximity to one another at the moment between $43.92 and $43.96 and which are fortified by 3 additional apspects of Support that together form a 5-member area of Gathering Support between $43.91 and $44.00.
Failed Support here would represent a short-term negative for the QQQQ with the potential to give Support at the Spring Peak($43.00) another test (See the Daily Chart ... not shown here).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
Buy at Gathering Support ... Sell at Gathering Resistance
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance.
Knowing where these areas are located helps them to determine when to buy and when to sell.
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Gathering Support ... Gathering Support ... Gathering Support
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QQQQ - Thursday's 5-Minute Chart...
The QQQQ sold off in dramatic fashion on Thursday when it opened below Support at its 2006 High and then proved unable to recapture that line.
Thursday's 5-Minute Chart (below) shows that a failed area of Gathering Support often constitutes a sell signal and that when an initial area of Gathering Support fails, it often leads to a test of the day's secondary area of Gathering Support.
On Friday, the QQQQ is back within the arms of its two-month trading range and testing another significant area of Gathering Support that includes as two of its members the 20-Day and 50-Day Moving Averages.
Failed Support here would represent an additional short-term negative for the QQQQ with the potential to turn into an intermediate-term negative (lasting weeks to months).
QQQQ - Wednesday's 5-Minute Chart...
After a sluggish morning, the QQQQ pulled back in the afternoon to test Support at its 2006 High ($44.86).
Wednesday's 5-Minute Chart (below) shows the QQQQ testing Gathering Support of which Support at the 2006 High is a member.
On Thursday, the QQQQ will continue the important test of Support at its 2006 High from which it broke up and out 4 days ago after a two month consolidation beneath it.
A decisive close below Support at the 2006 High would invalidate the breakout of 4 days ago and place the QQQQ back into "trading range" mode.
Economic Reports to which the QQQQ may react are:
1) 8:30am - Consumer Price Index (CPI)
2) 10:00am - Leading Economic Indicators
3) 12:00pm - Philly Fed Manufacturing Survey
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ delivered a narrow 27-cent trading range on Tuesday ahead of Intel's after-hours earnings report.
Tuesday's 5-Minute Chart (below) shows a sluggish day in which the QQQQ tested neither Gathering Support below nor Gathering Resistance above.
On Wednesday, the QQQQ will trade initially based on the 8:30am (EST) Producer Price Index (PPI) Report. The PPI is a measurement of inflation at the wholesale level and, therefore, is always a market mover.
Later in the day, the QQQQ will trade based on the 2:00pm (EST) Beige Book Report. The Beige Book is published by the Fed and is scanned for hints on what the Fed plans to do with interest rates at its next meeting.
Buy at Gathering Support ... Sell at Gathering Resistance.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before (Wednesday's areas are slightly different from the areas shown below that applied to Tuesday's trade):
QQQQ - Support & Resistance Areas...
Consistently Successful Traders ...
... buy at areas of Gathering Support (the purple areas below the previous day's closing price)
... and sell at areas of Gathering Resistance (the purple areas above the previous day's closing price)
... Knowing where these areas are located helps them to determine when to buy and when to sell.
The following Support & Resistance Report for the QQQQ applies to Tuesday's trade (01/16/07).
The previous day's Closing Price of $45.31 is labeled "CL"):
Buy at Gathering Support ... Sell at Gathering Resistance
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
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The Many Aspects of Support & Resistance...
A wide variety of individual aspects of Support & Resistance are in common use by traders today.
I use the following list of individual aspects of Support & Resistance in my work.
When two or more individual aspects of Support or Resistance coincide (reside within 10 cents of one another) in order to form an area of concentrated Support or concentraded Resistance, it is then that I sit up and take notice.
That's because two or more individual aspects of Support or Resistance that coincide create a much more reliable trading opportunity than does an individual aspect of Support or Resistance that is standing alone.
The following 5-Minute Charts provide a visual representation of how the QQQQ honored its areas of concentrated Support and concentrated Resistance in recent days:
Individual Aspects of Support & Resistance:
From a Daily Chart:
20-Day Moving Average
50-Day Moving Average
200-Day Moving Average
Upper Bollinger Band
Lower Bolling Band
Daily High
Daily Low
Daily Close
Daily Pivot Points (S2, Pivot, R2)
Fibonacci Numbers
From a Weekly Chart:
20-Week Moving Average
50-Week Moving Average
Upper Bollinger Band
Lower Bolling Band
Weekly High
Weekly Low
Weekly Close
Weekly Pivot Points (wS2, wPivot, wR2)
10-Week Trading Band
From a Monthly Chart:
20-Month Moving Average
Upper Bollinger Band
Lower Bolling Band
Monthly High
Monthly Low
Monthly Close
Monthly Pivot Points (mS2, mPivot, mR2)
From a 'Point & Figure' Chart:
Double-Top Breakout (D-Top)
Double-Bottom Breakdown (D-Bot
Triple-Top Breakout (T-Top)
Triple-Bottom Breakdown (T-Bot)
Bullish Support Line (BSL)
Bearish Resistance Line (BRL)
QQQQ - Thursday's 5-Minute Chart...
The QQQQ spent Thursday trapped between Gathering Support in the vicinity of $43.00 and Resistance in the vicinity of its 50-Day Moving Average.
Thursday's 5-Minute Chart (below) shows the QQQQ bouncing between Support and Resistance as mentioned above.
Friday represents the QQQQ's last chance in 2006 to recapture Resistance at its 50-Day Moving Average. The 50-Day stands at $43.38 going into Friday's trade.
The QQQQ must recapture and hold Resistance at its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Wednesday's 5-Minute Chart...
Having found Support at Tuesday's area of Gathering Support, the QQQQ rose to test Wednesday's area of Gathering Resistance.
Wednesday's 5-Minute Chart (below) shows the QQQQ pulling back from Gathering Resistance in early trade in order to fill the morning gap. After filling the gap, the QQQQ mounted a second challenge to Gathering Resistance and closed within its boundaries.
When an important aspect of Support is violated (like the 50-Day Moving Average has been), a stock will often return to the former aspect of Support in order to test Resistance there (Support, when violated by a falling price, becomes Resistance). That's what the QQQQ did on Wednesday.
On Thursday, the QQQQ is poised to give Resistance at its 50-Day Moving Average another test.
The QQQQ must capture and hold its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
The area above a 50-Day Moving Average is often regarded as 'buy all dips' territory while the area below a 50-Day Moving Average is regarded as 'sell all rallies' territory.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Friday's 5-Minute Chart (12/22/06)...
The QQQQ closed below Support at its 50-Day Moving Average on Friday.
Just as a close above the 50-Day Moving Average constituted an intermediate-term "Buy" Signal last August, Friday's close below the 50-Day Moving Average may now constitute an intermediate-term "Sell" Signal (an intermediate-term signal can last anywhere from weeks to months, as did the "Buy" Signal of last August).
Friday's 5-Minute Chart (below) shows the QQQQ bouncing sharply from its initial visit to Gathering Support only to find Resistance at the violated 50-Day Moving Average and then bouncing again, more modestly this time, in the afternoon.
On Tuesday, with failed Support at the 50-Day Moving Average ($43.33), all eyes will be on potential Support in the vicinity of $43.00.
The $43.00 mark is important because it represents a combination of the Spring Peak (see the Weekly Chart) and the middle of the 10-Week Trading Band (labeled 10wtb50 on the spreadsheet)...
1) In chart work, former peaks (such as the Spring Peak at $43.00) often serve as Support on the way back down.
2) The middle of a 10-Week Trading Band ($43.00) represents a neutral price for the previous 10 week period and also often serves as Support on the way back down.
If, therefore, Support at $43.00 fails, it would be viewed as evidence, in addition to failed Support at the 50-Day Moving Average, that the intermediate term picture for the QQQQ is weakening.
QQQQ - Friday's 5-Minute Chart...
The QQQQ gapped up at the open on Friday in positive reaction to the 8:30am Consumer Price Index (CPI) Report that showed inflation at the consumer level remains tame.
Friday's 5-Minute Chart (below) shows the QQQQ open at $44.76, one cent below Friday's area of Gathering Resistance. Resistance was found at that point and $44.76 proved to be Friday's high.
On Monday, the QQQQ remains at the upper end of its recent trading range, the high of which is the high of 2006 ($44.86).
The first Economic Report of note for the week will arrive at 8:30am on Tuesday. It's the Producer Price Index (PPI) Report.
The monthly PPI is a measurement of inflation that manufacturer's of goods are experiencing. It is, therefore, a close relative to last Friday's CPI Report and, like the CPI, is ordinarily a market mover.
QQQQ - Wednesday's 5-Minute Chart...
The QQQQ gapped up on Wednesday's open to test Resistance at Tuesday's High ($44.13). After printing a high of $44.11, Resistance was found.
Wednesday's 5-Minute Chart (below) shows the QQQQ hovering just above Gathering Support for the second day in a row.
On Thursday, the best thing that traders can do is remind themselves that it's 'Options Expiration' Thursday...often a volatile day in which anything can happen.
Gathering Support for Thursday stands between $43.38 and $43.50.
If that area of Support fails, another important area of Support stands at $43.00 and is provided by a combination of the 50-Day Moving Average ($43.02) and the Spring Peak ($43.00).
QQQQ - Thursday's 5-Minute Chart...
The QQQQ opened on a positive note on Thursday, but then gave way to some heavy volumed selling.
Thursday's 5-Minute Chart (below) shows the QQQQ delivering what is often crudely referred to as a "gap and crap" day. It also shows how a wider than usual area of Gathering Support served as such until 3:00pm at which time Support was violated altogether, perhaps in reaction to the 3:00pm Consumer Credit Report.
On Friday, the QQQQ will trade based on the 8:30am Employment Report.
This much anticipated report will likely be a market mover that determines whether the QQQQ recovers from Thursday's pull back or continues down to test Support at last week's low ($43.26).
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