Kevin Haggerty is a full-time professional trader who was head of trading for Fidelity Capital Markets for seven years. Would you like Kevin to alert you of opportunities in stocks, the SPYs, QQQQs (and more) for the next day's trading? Click here for a free one-week trial to Kevin Haggerty's Professional Trading Service or call 888-484-8220 ext. 1. 

The SPX reversed on an RST sell entry yesterday following the 1310.88 intraday high and carried down to a 1295.81 intraday low, closing at 1297.23, -0.6%. That was a Moonshot for daytraders. In order for that RST to set up, the 1310 Monday high had to be taken out.

NYSE volume was 1.55 billion shares, with the VR 31 and breadth -1432. The air pocket yesterday follows six straight up-days by the SPX and a short-term overbought condition measured by the volume ratio, breadth and the 5 RSI. The 3/20 - 3/22 time period kicked in with a good short-side chop for daytraders in the major indices yesterday. However, in the morning, traders caught significant upside moves in the SMH and other trading service semi focus stocks like BRCM, MCHP and KLAC. NVDA gapped, so there was no valid entry. The other primary focus yesterday was the energy stocks, and they gave traders excellent long-side moves using the First Hour strategies. The afternoon downside reversals took the semis and energies back to the starting gate, so they are front-and-center once again today.

The media is working toward their monthly interest rate crescendo over the next Fed action which means very little because the Fed has continued to print money at a record pace and that is why they are ending the M3 reports this month. With eight trading days left in Q1, the Generals/hedge funds won't let the market come in too much so the long side in the major indices can be played on weakness. For the SPX, the initial focus is 1297 - 1295, followed by the 1291 - 1290 level.

Have a good trading day,

Kevin Haggerty