Major Index DiNapoli Level Analysis 

Following an August rally, the major indices have seen some bearish volume action and are off their highs.  DiNappoli levels have been projected, identifying areas of possible market support.

As of the writing of this article, we have only seen two days of selling so this report should not be taken to imply that the market is falling apart.  However, market volume has been bearish.  If the selling continues, the cautious trader should identify areas of probable market support and be watching to see if support holds.

Incorporating MarketClub Giant Footprints

Above, is a daily chart of the S&P 500 demonstrating two days of selling on Wednesday and Thursday of last week.  You will note that there is a "sell" signal generated on the first day of selling.  This signal was generated by MarketClub Giant Footprints analysis tool, which is picking up on the increased volume.  The same Giant Footprints analysis on the longer term weekly and monthly charts are still bullish, however.  Quarterly chart analysis suggests a bearish bias.

The picture sounds confusing.  What we know is that the market is not in any well defined trend, which makes trading all the more difficult and dangerous.  Tools like Market Club Giant Footprints are helpful in spotting where the institutional, or "smart", money is heading.  Identifying logical support levels using a technique like DiNapoli Levels allows you to formiulate a trade plan to protect against a potential downturn or to take advantage of it.

SPX DiNapoli Levels

Watch for support on the SPX at about the 1,275-1,276 level.

NASDAQ DiNapoli Levels

Support for the NASDAQ is currently being tested at 2,155-2,162.  The index closed on Friday at 2,165.79.

Russell 2000 DiNapoli Levels

The Russell closed Friday at 708.52, with support being presently tested at 705-706.

Calculating and Interpreting DiNapoli Levels

One of our members, Kent Shaw, has provided us with the benefit of his understanding on this subject.  This method of analysis is based upon Fibonacci levels and looks for confluences within the price levels, based upon moves of varying magnitude.

Joseph DiNapoli is responsible for the development of DiNapoli level analysis.  If you are interested in learning more about this powerful and insightful analysis technique, there are several videos featuring Joe DiNapoli in which he details the use of his methods.  At least four of his videos are availble through InvestorFLIX.

DiNapoli Trading Resources

Joe DiNapoli Trading Videos
Reveal the methods and techniques
of the DiNapoli Level creator.

DiNapoli Levels Explained
Kent Shaw provided us with
information on this analysis method.

FREE MarketClub Trading Video
Reveals how Giant Footprints can
identify large price moves.