Options and Stock Market Technical Chart Analysis for June 1, 2009 by Idan Koren

Hey guys, Today we looked at the massive rip higher, and tried to balance the portfolio with bullish intraday trades. But I want to go ahead and give you a heads up that a lot of resistance levels were tested today and a confirmation break of these resistance levels will be required to consider them broken. A move lower tomorrow is very possible as the market will need at least one day of consolidation to break the key 94.50 level on the SPY, which holds the inverse head and shoulders neckline in play. If we confirm a break of that level, and the 200 SMA tomorrow, then the bulls will have more power to bring the market up to the 38.2% retracement of the whole bear market move lower around 1000-1010 on the S&P. Today we also were 5 points away from hitting the Dow Jones 200 SMA daily. The Dow Jones has been known to act better technically, so maybe that’s the sign for the potential pull back. I also look at the VIX, XLF, GS, VMW and AAPL for more trades and sense of market direction!

Today we look at the damage that the bears have caused the market. Just like i mentioned in my last video, if the data today breaks stocks, there will be no bounce since all the bulls are trapped. The bears not only got to drag the bulls but broke important levels such as the 1035-1040 levels. I expect the market to possibly retest these levels (as high as 1042) in the days to come, and if these levels hold as resistance, we might break to the downside. Tomorrow we have Jobless claims fo the months of september and that will be a market mover for sure, though we do have more room for the downside. The next support level is between 1014-1018, and is also the infamous wedge support that we have been looking at for a while now. A break of that support would mean a new trend lower. If the bears do confirm another day below the 1035-1040, I will become a lot more bearish biased, in general. Volume today was stronger than most days, and therefore it’s significant! I also look at the VIX and show how it broke 27-28 levels, though i would like to see it break 30 before i become a true bear. I look at the USO and talk about the intraday trader there and te significance of the USO not breaking back into the triangle formation we had showed yesterday (despite talks on IRAN). In the other video I also talk about UUP, AAPL, AMZN, WYNN, LVS, FAZ, TZA, SRS, BIDU and SBUX very quickly.
Video Rating: 4 / 5

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