Market Analysis for Ending Day 05/21/09

9:50 pm

Market Analysis Video for Ending Day 05/21/09
**Watch in HD for crystal clear video**



Hi everybody, today was a perfect day for us in the stock market, for we were expecting the downside action today. If you would have tuned into the STOCKTOCK.COM blog early this morning, you would have seen that I posted the S&P futures chart showing that the least path of resistance was to the downside and stated it would be a slow down day. Now what can we expect going forward? I believe today was the confirmation from yesterdays reversal candlestick and I do believe we will start trading in that downward channel on the SPY and the QQQQ. You want to make sure that you are not heavy on the short side quite yet, for most of these inverse ETFs have broken out and most likely will get a back test of those broken trend lines. So what you should start doing is picking out which one you would like to play, and gauge in on a perfect entry. I also want to bring to your attention the perfect play we called on the QID calls that were up over 50% in one day and the QID(TYP) ETF. Don’t worry if you missed this one because I am going to start posting great option plays with charts to support the directional movement. The lovely thing about it also is that I will include the channel analysis on the option charts as well so you can get a great entry (How cool is that LOL). In any case, the key intraday levels to watch on the SPY is 90(Gap Fill resistance) and a break below 88(200 ma on 60 min). The key intraday levels to watch on the QQQQ are 32.96(May 14 lows) and 34(trend line back test resistance).

4:14 pm

- Great day today guys just as expected. We had a nice slow day down with some consolidation along the way. Video will be up later tonight.