For Friday, I am looking at support at 43.15 / 42.75. I am looking to close another position at 43.15. Support at 43.95 / 44.25. The only report that may have a big impact is the Department of Commerce’s Construction Spending report reported at 10AM. So I am going to to be looking for a trade around then.

The construction spending report reports residential, non-residential, and public expenditures on new construction. usually, this is not a big deal, since monthly reports are subject to friggin’ huge revisions month to month.

The Personal income report comes out before the open. It is an indicator of future consumer demand. When consumers stop spending, it is bad for growth.

Mar 30 reports
8:30 AM Personal Income, Personal Spending
9:45 AM Chicago PMI
10:00 AM Construction Spending

Friday QQQQ support 43.15 / 42.75 Resistance at 43.95 / 44.25

For Thursday, I think all bets are off. I am looking at a tighter range around the market. I will probably take a directional position based upon which line ( support / resistance ) is broken.

There are some reports , Initial Jobless Claims , and Gross Domestic Product , that are coming out at 8:30, so I cannot expect that information will have been factored in as analyst will have time to read, studied and analyze the reports.

I am thinking more about 1Option’s position that the small trader should take directional bets. I cannot predict the market with 80% accuracy yet, so I have a while to go. But I do think I will have to go more directional to increase my returns. I would have made a lot more if I had bracketed my orders yesterday. When the market was making a triangle, one order above and below with a trailing stop would have made me some money.

I will have to practice those in my paper trade account today.

~squid

Thursday QQQQ Support 43.35 Resistance 43.90 / 44.25

The market held inside my support and resistance points all day. Did not see any good trades, so I remained on the sidelines.

We have lots of news that can move the market, so I will be looking for some event trading, other than that , i probably will stay out.

Wednesday Support 43.83 / 43.55 Resistance 44.35

~squid

Monday was a great example of how support / resistance levels are set and used. Yesterday, I set support @ 44.0. This level is where there is ‘congestion’ in the market. This is both on the down and upside. So when the market goes thru a support level , that level then becomes a resistance level.

So Monday, after the housing market report, the market blew thru support. Once it blew thru the support, the 44.0 level then became resistance on the upside. From the chart below, you can see the market did hesitate at the 44.0 level until the afternoon.

From 12:30 to 2 p.m. , the market re-tested the 44.0 level. Finally at 2 p.m. the market pushed thru closing higher.

Tuesday QQQQ : Support 43.85 | Resistance 44.45 / 44.7

~squid

Another day, another week. Options are expiring this week. I am going to hold off on my analysis until later in the week, when I get a better idea of the levels I plan to trade.

The QQQQ’s ended up with a narrow range on Friday. A failed move on Friday, puts resistance at around the 44.25 level. It is going to be really tight, and unless we have a bear day, the QQQQ’s will break thru that level. The next resistance level will be around 44.5.

The first time thru a level, the QQQQ’s will fade, so I am going to make sure it is a good move before going long.

Monday QQQQ : Support 44.0 | Resistance 44.5 to 44.3

UPDATE : 9:55 AM NYC Time [ We have the new home sales report due at 10:AM that could move the market]