Back to the Lows we Go in Chipotle CMG after Big Arc

Jul 19, 2017: 8:31 AM CST

After a textbook Rounded Arc formation completed in Chipotle (CMG) shares, we  now see a return to the prior lows.

Let’s update our charts, note the key price level, and study the pattern:

Chipotle CMG Rounded Arc Reversal

A big negative momentum divergence – a “Three Push” Pattern – set in on the rally toward $500 per share.

Sellers stepped in and buyers took profits, resulting in the right side of the “Mirror Image” or Rounded Arc pattern highlighted above.

After a successful decline toward the $400 price target, buyers lost the battle this morning as shares collapsed beneath $400 toward the prior low pivot near $370 per share.

While studying the pattern, make a note of what happens next into the $370 target. Continue Reading…

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Peeking at Market Internals on the Breakout to New Highs

Jul 17, 2017: 1:00 PM CST

What are market internals saying about the recent big bullish breakout to new all-time highs?

Let’s take a look and listen to the message beneath the market:

SP500 S&P 500 Market Internals Bullish Breakout

We listen to the message from price which is saying “I’m breaking out – I’m all new all-time highs.  I’m very bullish.”

Great, Mr. Market – that’s wonderful.  But what is Mr. Market  Internal saying?

We’re charting the “Big Three” NYSE Breadth (top), TICK (middle), and Volume Difference (of Breadth) as our main market internals.

First, we saw a CONFIRMATION or bullish surge on July 12th when price broke through the falling trendline.

This allowed us to call for higher prices yet to come via a Bullish Dominant Thesis in our Membership Report.

Price did actually travel the bullish “Open Air” price pathway toward then above the 2,450 target. Continue Reading…

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Big Breakout to New Highs in Emerging Markets EEM

Jul 14, 2017: 10:43 AM CST

If you’re only watching the US Indexes like the S&P 500, you may have missed Wednesday’s and Thursday’s bullish breakout in Emerging Markets (ETF symbol EEM).

Let’s take a look and see what’s happening in this lesser-watched market:

EEM Emerging Markets

While the S&P 500 trades just beneath its all time high – and the US Dow Jones Index did push to a new all-time high – shares of the Emerging Markets ETF (EEM) pushed through the $42.00 per share barrier to a new multi-month high.

The last four trading sessions have been resoundingly bullish on higher volume and momentum.

Price broke through the upper boundary of a sideways rectangle at the $42.00 pivot.

The uptrend continues with shares of the ETF breaking out.

Continue following this development and relative strength in action. Continue Reading…

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Watching a Bullish Breakout in Apple AAPL Shares

Jul 13, 2017: 8:41 PM CST

Apple (AAPL) shares broke Thursday above a key price level, and we’re carefully watching what happens next.

Here’s the breakout and the Daily Chart levels:

Apple AAPL Bullish Breakout Trade

Buyers held support after a steep pullback (retracement) toward the $142.00 price level.

Note the yellow highlight and the positive divergence – with declining sell/bear volume.

That combination (in an ongoing uptrend) is often a precursor to a bounce and it sets up a support/rally play from a deeper (higher timeframe) retracement.

Price broke above the overlap (crossover) of the 20 and 50 day EMAs into $146.00.

Bullish traders may attempt to add to existing positions (bought off support) or put on a new buy position on the breakout.

Stops will be triggered beneath this pivot and certainly beneath $142 and $140.

Unless price turns and trades back beneath the EMAs – triggering a Bull Trap and failed breakout – we’re watching for additional upside action toward the $155 high in the near future.

Let’s see if that bullish pathway occurs in the ongoing bull market. Continue Reading…

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Triangles and the Current Rectangle Patterns in EURUSD

Jul 13, 2017: 9:24 AM CST

We’re seeing many exciting Triangle Price Patterns develop on the pathway lower for the EURUSD FOREX pair.

After two smaller triangles, a clear sideways rectangle developed with clear boundaries.

Let’s study these triangles and pinpoint the key pivots for future trades:

EURUSD Triangle Pattern Rectangle Price Pattern Downtrend

On the way down from 1.50000 to the 1.0000 level, the EURUSD formed three large Ascending Triangles that gave way to strong bearish breakdown swings in price.

The strongest bearish swing was in 2014 that collapsed the pair from 1.40000 to the 1.0000 low.

From there, a sideways trading range or Rectangle Price Pattern developed off the floor of support to the new pivot – at which price rests now – of 1.4150.

Will we see a swing DOWN away from our resistance pivot level over the next few weeks – or will the Euro strengthen against the recently downtrending US Dollar? Continue Reading…

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