Daily Game Plan Highlights

dave@keystonecharts.net
Mar 28, 2018
2 min read

QQQ led the equity indices lower after holding below the broken .382 retracement yesterday (by a tic). Yesterday’s low was down -10.01% from the March 13th high. Buyers showed up at this correction level.

TODAY'S TRADE IDEAS

The E-Mini S&P 500 has held its 200dma multiple times on the latest declines. I can't remember key level like this working so many times, and nearly exactly. Obviously many eyes are on this moving average and longs don't want to see this break. For today, 2627 area is initial key resistance and pivotal pt short term.

The Dow Jones Industrials Average had a negative technical signal when it broke out of this triangle formation. The initial target is right about its 200dma area and recent low. The extended target in DJIA is closer to 21700 area.

According to Dow Theory, the recent low in the transportation average would signal a larger corrective decline and DJT is holding above that closing pivot for now. A break of the 200dma here and settle below 10136 would see more downside potential.

FDN is the internet fund ETF; not a lot of volume, but holdings include AMZN, FB, NFLX, PYPL, GOOGL, TWTR, etc. Held its .618 retrace of the year yesterday; use as pivotal pt. Not only for tech, but for overall market as tech has been weighing recently.

TLT vs SPY: asset allocation model shows fixed income becoming positive to equities after TLT/SPY climbed above the descending trend line. There is some key resistance here using the futures model that needs monitoring early today. But, this is not the type of chart you would expect to see with a growing global economy supporting a bull market in stocks.