Day Trading Parameters

For June 11 , 2010

(Provided to you in advance of the Trading Session)

Summary: Treat initial support as inflection.

Our combined near-term analysis tells us the market is in a near-term neutral trading channel. In addition, it tells us that the market has recently broken above the neutral intra-channel resistance line that had been in tact. This former level of resistance has since been converted into support and it is inflection. If recently converted near term neutral intra-channel support remains in tact expect the market to begin the day with a bias to increase on Friday and expect a test of near term neutral resistance to follow.

Initial intraday trading parameters for the NASDAQ exist between 2207 - 2279

If 2207 breaks lower expect 2141

If 2279 breaks higher expect 2304

Otherwise expect 2209 - 2279 to hold

This is an Overnight Snapshot

(real time updates are available in our alerts viewer)

These Parameters are telling us to trade the Market as follows...

RESISTANCE PLANS:

If 2279 is tested first, these parameters tell us to short the Market with a downside target of 2207
However, if 2279 breaks higher instead, an increase to 2304 should be expected instead

SUPPORT PLANS:

Conversely, if 2207 is tested first, these same Parameters tell us to buy the Market with an upside target of 2279.
However, if 2207 breaks lower, these same Parameters are telling us to short with an expected downside target of 2141

Our Automated Day Trading Alerts Viewer will alert you to tests automatically. Find the link to this viewer in our Strategies Tab in the Main Menu.

IMPORTANT: The rules of trading say that a test of support or resistance Parameters occur in the NASDAQ when the NASDAQ comes within 3 points of our trading Parameter (15 points for the DOW and 1.5 points for the S&P). When, for example, the Market comes within 3 points of a support level, and, according to rule, we look for a long position, we would refer to the Focus List at that exact time to find which stocks are best to trade. In order for our system to work efficiently for Market-timing purposes, we must look for trading ideas at the exact time the Market offers us trading signals as indicated from the Parameters above.