Jan 16 Stock Scan and Reversal Market Update

Jan 16, 2015: 3:22 PM CST

After yesterday’s Swiss Franc surprise (see the “Aftermath Update” post from this morning), the US S&P not only stabilized but is showing signs of a bullish short-term reversal.

We’ll start our update and stock scan with our S&P 500 level chart:

Mainly, we’re focusing our attention right now on the 2,010 level for a possible breakout and bullish surge through “Open Air” toward 2,020 or 2,027.

For now, focus your attention on the 2,005 to 2,010 neutral zone with the bull/bear levels in play.

Note the lengthy positive momentum and TICK (internal) divergence, suggesting a possible rally.

Continue Reading…

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Documenting the Damage on the Swiss Franc Fallout

Jan 16, 2015: 1:36 PM CST

I wanted to highlight the ‘damage’ or intense price movement on select FOREX pairs because – probably – we’ll never see another overnight move like this in our lifetimes.

The Swiss National Bank shocked the markets with a “Black Swan” announcement that they will no longer intervene to stabilize their currency against the Euro.

For a great, succinct background piece, be sure to read “Here’s what the Swiss Central Bank did and why it’s such a shocker” via BusinessWeek.

And now, we view the damage – for educational and reference purposes – on the charts.

We’ll start with the weekly perspective of the Swiss Franc against the Euro (the focus):

To defend the 1.20000 level, the Swiss National Bank essentially printed francs (currency) and purchased Euros.

Notice the level of intervention at the cap level where the bank acted to thwart natural supply/demand forces which were persistently pushing the value of the Euro lower against the Swiss Franc (and thus strengthening the Franc).

The process worked, manipulating value against the Euro until yesterday’s announcement that the policy would be terminated.

Within moments, all hell broke loose, to use a colloquial term. Continue Reading…

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Trade Planning off the 2000 Key Level in the SP500

Jan 15, 2015: 4:03 PM CST

It’s time once again to plan our intraday and swing trades off the key inflection (pivot) level 2,000 in the S&P 500.

“Will it hold or will it break?”

What happens next on the movement away from 2,000 will define our bullish or bearish strategies.

Here’s a pure price chart to highlight this level and how price has behaved in the past:

Through the latter part of 2,000, we were playing the “Hold or Break” game with 2,000 with our trades.

We’re doing the same thing now as price clearly interacts with this level for the sixth time as shown above.

Earlier in January, buyers saved the market from another decline from this level but this time they collectively may not be strong enough to halt the selling pressure – and stop-losses triggering – on a clean break under 2,000.

Before that – in December – sellers won but were thwarted by positive reaction to the Federal Reserve announcement which catapulted the index to a new yet extremely weak high.

And now we return twice to this level. Continue Reading…

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Jan 14 Selling Market Update and Trending Stock Scan

Jan 14, 2015: 1:46 PM CST

We have yet another sell session in motion, let’s take a moment to highlight key levels, read breadth, and find opportunities in the top trending stocks for the day.

We’ll start as usual with our S&P 500 level chart:

Ultimately, price is doing exactly what it should be doing, at least in terms of breaking out of the compression (see my prior update on “Support and Resistance Planning for the S&P 500 and Dow Jones“) and trading down toward the 2,000 target.

The focal point today certainly shifts to 2,000 and the “Hold or Break” (so far it’s breaking) outcome there.

Look to play bearishly on a movement down away from 2,000 toward the prior low near 1,980.

Otherwise, we’ll plan for bullish “bear trap” or bullish plays on an intervention that takes us back above 2,000.

Continue Reading…

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Turnaround Tuesday Market Update and Stock Scan Jan 13

Jan 13, 2015: 3:04 PM CST

So far today has been a thrilling session.

Let’s jump straight into our mid-day “turnaround” update and plot levels and trending stocks that are important.

We’ll start as usual with our S&P 500 level chart:

Be sure to start with this morning’s update on “Support and Resistance Planning for the S&P 500 and Dow Jones” which highlights the higher frame breakout trigger levels.

Price did break free of these trendlines and pushed lower toward the 2,000 target which was almost achieved in a single session.

Note the reversal up off the 2,010 level and focal points of 2,025 and 2,010.

Continue Reading…

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