Daily Levels for 19 April 2012

Morning Ladies and Gents,

Lets get started!

First we will look at the US market as usual.

The Dow closed down -83 points or -0.63% to close at 13,033
The S&P500 closed down -6 points or -0.41% to close at 1,385

The Nasdaq closed down -11 points or -0.37% to close at 3,031

On the S&P, we closed slightly down last night trading in a small range of about just above 10 point range. We closed the day as a small bar on the daily chart. We have yet to break above the weekly high of 88 last night. The lower support of 60 is still holding nicely. Should we break down, we should find support at 60 and if we break up, should find some resistance at about 94. We are currently trading at 1380.75 as of this post at 8.13am up 3 points.

Take note that there will be some major economic report int he US tonight which can move the stock market such as unemployment claims, existing home sales and Philly Fed Manufacturing Index.

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Whats in store for us.

Alright.. Looks like we are going to be still..... ta daa.. guess what.. chopping in this range again!

But we may gap down a bit as we closed quite weak yesterday and the US market also closed lower. The shorts from yesterday's overnight would be a bit happier today. But I think if we really gap down, you might want to consider to take at least a portion of your profits off since we we have some major support below.

So.. whats in store today.. If we really gap down, we should be right at or just below the immediate trend line support. Right after that, we have the 20ema at the 1590 level. Is this going to be the day we close down and reverse and dooms day? Well.. with the election coming up and stuff, I wouldn't rule out that possibility even if it is a small one, but I think it is still not today.

So I expect support to hold somewhat for today. Depending where we open, we might try to trade back into the upward wedge pattern or worst case, trade as a small bar too. If we form a small bar today, it would be a bit harder to trade so you have to watch out for that too. With the economic reports tonight, I expect a range trading day with support holding for the day.

Here are the levels for today:

FKLI

Upper Resistance: 1601, 1604
Lower Support: 1594, 1592, 1590, 1587

KLCI

Upper Resistance: 1602, 1604
Lower Support: 1596.5, 1594.5, 1592

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P/s: Heads up, The CME grains seems to be pulling back a bit now so trade carefully.

Trade safe all! I'll update again if there is any urgent news on the wires.


Best Wishes,
Tech Trader

--- I'll come back to change the typo at a later time.. market opening soon..