I charted SPY at 9:56 am on July 30, 2009 when it was trading at $99.24.  I’d love to jump into this rally, but the line of resistance from the trend line of higher highs looks menacing.  It looks like the 10 day moving average was close to touching yesterday, but SPY gapped up before it could actually get there today.  Now it seems it’s a better idea to sit back and wait for SPY head back to its trend line of higher lows before making the next bullish move.

Just because I don’t want to add SPY to my account right now doesn’t mean it’s coming down right away.  I just don’t see big upside potential from here.   SPY is still showing strong momentum in the Williams %R indicator, so …

I charted the large Oil ETF, USO, at 2:48 pm on July 29, 2009 while USO was trading at $33.56.  USO gapped down this morning to open just below $35.00 and has drifted down from there throughout the day.  Once oil changes directions it typically lasts for more than a few days as the “big boys” unwind or add to their positions.  Support might not be too much lower though.  The trend line of higher lows that started three months ago is only a little more than a dollar away for USO.  Just before that is the 100 day moving average.  The 100 day along with the trend line of higher lows worked as support a couple of weeks ago and could do the same …

I charted Microsoft (MSFT) when it was trading $23.13 on July 24, 2009 at 10:40 am.  I’m kicking myself for not dumping my long shares in my IRA before earnings yesterday.  Had I been watching this chart I would have.  I’m still long 400 shares in my IRA, but now think this might be a good time to get in for those not already long.  The long trading channel shows support coming in just under $23.00 where MSFT bottomed this morning.  That happens to be at the same point of MSFT’s 50 day moving average.  The 10 and 20 day moving averages broke this morning, so they could provide some resistance to the upside.

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I charted Teva Pharmaceutical Ind (NASDAQ: TEVA) premarket on July 24, 2009 after it closed at $50.19 yesterday.

For the TEVA chart it all comes down to breaking through the rising wedge it’s in the middle of now.   That means I’ll be watching this wedge to see if the rising trend line of higher lows breaks.  If it does TEVA will likely make a move lower and offer a better entry point.  If TEVA makes it much above its June intraday high of $50.35 I’ll be looking for a new trend.  The six month view has some longer trend lines that point to room for higher highs to continue, but TEVA has to get past this wedge first.

Also worth mentioning – TEVA is holding support above …

I drew a candle chart of PowerShares QQQ Trust Series (QQQQ) when it was trading at 39.48 at 3:15 pm on July 23, 2009. 

I see QQQQ hitting resistance here at the point of its trend line of higher highs.  From this line it can move slightly higher each day or even sideways, but is more likely to take a dip before moving too much higher.  Adding to the theory of the QQQQ being ready for a break, the Williams %R indicator for the 14 and 28 day periods are both at the very top of their oversold areas. 

 On a very unsophisticated measure, QQQQ has been up every day for the past 12 days (including today).  Just like betting on black every time in roulette, “betting” …

I charted CVS again today at 1:46 pm while it was trading at $33.15.  After getting it right last month when I said it was heading higher.  S&P upgraded it today, but the chart shows that it could be ready for a breather.  It’s up, but on low volume and found resistance at its mid-May peak.  That horizontal line comes in contact with the six month trend line of higher highs. 

I still like CVS longer term, but I’m waiting for a dip before I get in again.  I have a limit in to sell August 31 puts and am going to try to wait on that order to hit at least a few more days.  If CVS stays above $32.50 through …

I charted USO before the markets opened on 7/20/09.  On Friday it closed at $34.24 and is up in premarket trading.  USO looks to have more upside potential than downside risk from here.  It found support on its long trend line of higher lows at the beginning of last week.  That line coincided with the 100 day moving average to give stronger support there on a revisit south.  USO also just closed above its 10 day moving average on Thursday, stayed above it today and is starting off positive this morning.

The upside could see resistance at the 50 day moving average which is hovering around where USO landed after it gapped down at the beginning of July.  After that level, USO might have up until its …

I charted NASDAQ OMX Group Inc (NDAQ) again this morning while it was trading at $20.07.  This is a follow-up to my NDAQ chart on July 8th.  As I predicted that was the time to get in.  My naked puts are set to expire today for a profit.  From here I have to wonder if the 20 day and 100 day moving averages will continue acting as resistance.  I might not roll my puts if it looks like NDAQ will fall below $20 by close. 

Along with the moving averages, the trend line of lower highs is just above the current price.  Williams %R is starting to level out and is more neutral.  Waiting for NDAQ to head back closer to …

I charted NASDAQ OMX Group Inc (NASDAQ:NDAQ) pre-market after NDAQ closed at 18.93 yesterday.

This is one of my favorite charts to follow using the Williams %R technical indicator and I’m kicking myself for not closing my July 20 naked puts earlier when I saw it turn.  It could turn out OK if I’m right about its chart.  NDAQ is using the previous resistance trend line of lower highs as a new line of support for lower lows.  NDAQ is still going down, but at a slower pace.  The real key I see in this chart is that NDAQ just hit the bottom edge of Williams %R oversold for both the 14 and 28 day indicators.  Check out the lines …

I charted United States Oil Fund LP (NYSE: USO) at 12:23pm when it last traded at $33.95.  While a lot of bearish news has caused a solid pull back in USO, it could be nearing support around this level just below $34.00.  The main indicators that bring me to that opinion are trend lines.  USO touched its trend line of lower lows this morning after coming very close to it yesterday (which could be my less than precise drawing).   In addition, the previous point of resistance and then support from May 2009 comes in around $34.00 too.

I’m long SLB which moves closely with USO and I’m staying in it for now.  If these trend lines break, I’ll have to consider jumping ship.  The horizontal line could …