$mart Money is Buying Today

MrTopStep.com

The Smart Money is Buying.   The battle over the 200 EMA of the SPY at $138.03 was won by the bears.  Bears +1: Bulls no score.  The bulls will have their day and the SPY will be back to $138.00 soon.  The time to buy is now.

The Level 3 Data Quant Report is showing high levels of price exhaustion. We are ready for a bounce and it should happen soon.  The initial jobless claims came out higher than expected, which is adding a little fuel to the fire, but we remain a buyer of dips today.

Watch the key support and resistance levels as well as the intraday correlation between the SPY and TLT.

Wednesday November 14th: “Can the Rallies Hold?”    Yesterday I posted that we need to hold $137.50 for the bulls to have any chance.  Well, the $137.50 price level of the SPY did not hold for long.  Once this price was broken it acted as resistance and was rejected twice before capitulating to $136.00. The $137.50 is a very important level.  Write this price down on your chart as it will be a point of resistance again in the future.    The SPX 1370.20 support level proved to be an important trading value.  The SPX high of the day was the opening price of 1380.44. The low of the day was the close at 1356.16.  See the November 14 pivot points and commentary below:

L3D Quant Report Buy Signal 11/08: SPY, DIA, QQQ, IWM and DVY.  Sell Signal TLT.  All buy and sell signals remain in effect until you are notified otherwise.

Watch the key support and resistance levels for shifts in buying and selling pressure.

Key resistance level for S&P 500 (SPX) today November 15th – 1359.04, 1364.97, 1370.90

Key support level for S&P 500 (SPX) today November 15th – 1350, 1345.76, 1339.95

 Today’s pivot points November 15th:

UP

1355.18

1359.04

1361.3

1364.97

1370.90

 

DOWN

1352.95

1350

1437.90

1345.76

1339.95

 

 

SPY – S&P 500 ETF:    L3D Quant Report Buy Signal 11/08: SPY at $138.04 with an exit target at the 0-line of $141.79.  The new exit target is $140.62.  This buy signal indicates Selling Pressure Exhaustion. The market action has sold off hard the past few days.   The SPY had two small bounces from the exhaustion signal but they have not held.  The bulls did not hold $137.50 and this important level will act as the first level of resistance going back up.  The first step is to gain $137.50 then punch back to the 0-line at $140.62.

The following commentary has been here for a few weeks. It has played out exactly as anticipated. We are now at $138 and it is time to bounce back into the $142 level. “The most likely trading scenario is that we have seen the highs of the year of $148.11 and that we should rebound off our current levels back into the $142 range then print a lower high less than $145.00, trade sideways and down to $140, break through to print a lower low in the $138.00 level.”

 

Level3Data Chart 1

Chart 1

TLT – Long Term Bonds: L3D Quant Report Sell Signal 11/08: TLT at $125.84 with an exit target at the 0-line of $123.09. The new target is $123.98. The TLT is a mirror image of the SPY. The TLT closed 11/14 at $126.73. This sell signal indicates Buying Pressure Exhaustion. We are back into a condition of Buying Pressure Exhaustion and price being overbought. The TLT bears must now push the price back below the 0-line at $123.98 which is now acting as support.

Level3Data Chart 2

Chart 2

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