Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market analysis for Wednesday: (QQQQ), (SPY), (DIA)

|Includes: DDM, SPDR Dow Jones Industrial Average ETF (DIA), DXD, QID, QLD, QQQ, SPY

Our combined analysis for Wednesday tells us that the Market has a high probability of increasing aggressively if initial support levels remain in tact.  The initial channel, between initial support and initial resistance, is tight for both the S&P and the NASDAQ.  That tells us the Market will probably continue to back and fill initially.  Our combined analysis tells us to expect the Market to begin the day with a bias to increase on Wednesday, so reasonably a test of resistance could occur first.  However, afterwards, a choppy pattern could prevail like it has in days past.  Unique to Wednesday though, the tired pattern is becoming just that, tired.  The upside potential is strong given a conversion that has occurred in the mid term chart patterns.  If support holds, those charts tell us to expect the Market to increase aggressively.  A moderate pullback and a test of neutral mid term support lines is likely if mid term up-channel support breaks lower.  However, given the combination of indicators stemming from the near, mid, and long term charts in all three markets, that seems like a less likely probability.  The balance rests of the shoulders of initial support.  Although resistance is likely to be tested first, initial support is extremely important.  It needs to hold for the Market to move higher aggressively.  If it does, brace for a surge eventually.  Clearly that would require initial resistance to break higher in the S&P and the NASDAQ too, but that would not take much.  The dribble of riding resistance lines higher will likely change soon according to our combined analysis.  If that happens, and support holds, we expect a breakout to the upside.  Treat 9313 as inflection.  If it holds expect a surge towards 9510 eventually, with a stall in the middle.  However, if 9313 breaks lower, expect a pullback to 9148, expect the Market to stabilize there, and then expect it to reverse higher again afterwards.  Either way, 9313 is the key and it will provide actionable trading plans for proactive investors accordingly.

Author has no conflicting positions.