Review Of Tuesday’s Stock Market Action

Intra-day (SPX)

Tuesday was a drifter. I always mention that the first half-hour is the most critical point of the day, unless there are intra-day reports out. These 30-mins typically indicate whether you should be long or short for at least the first half of the day for gaps. This little timeframe here is where the bulls and bears fight the hardest and the resulting outcome will stun the other side. 1% gaps up and down have become frequent occurrences, so expect a whole lot of those.

3-day (SPX)

Above is 3-day chart of the S&P 500. Notice how we made it a bit more than half way from yesterday’s close? This is a reactionary rally. There are two key resistance points for tomorrow’s trading: one at around1,160 and above that, 1,280. A major intra-day breakdown will surely signal that we will test Monday’s close. By know there are no reservations as to how far we can drop.

Below are 3-day charts for the DJIA and the NASDAQ:

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