With the market surging to new highs on the wings of a better than expected ISM report this morning, let’s take a look at the current SPY/S&P 500 intraday chart with a quick check on key market internals such as the TICK and Breadth.
Exxon-Mobil is teetering at a critical support zone that buyers must hold… or else a monthly downside target could come into play. Price is currently in an ascending trading range with clear support and resistance levels. Let’s take a look at the weekly and monthly chart of Exxon-Mobil (XOM) to see these critical levels to watch.
Let’s take a quick end-of-year look at the major Quad-Markets – Bonds, Stocks, Commodities, and the US Dollar Index – to see both the relationship and performance in 2009. Don’t we wish we had this graph in front of us as we started last year!
Key Market Internal signals flashed negative divergences and non-confirmations of recent S&P 500 and SPY 2009 price highs, setting up the high probability for a reversal to the downside.
I wanted to highlight a chart I’ve been showing to members of the daily Idealized Trades Reports since Wednesday evening – we’re now seeing the downward action forecast by the plunge in Market Internals. Let’s take a look at the updated chart.
In continuing the thought from yesterday’s post “A Look at the Dual Rallies in the US Dollar Index and S&P 500,” I wanted to show a longer-term perspective of the two markets, starting with the S&P 500’s October 2007 peak. This will give us more ground to cover in assessing the inverse correlation between the Dollar and the S&P 500.
With many eyes focusing on the dual (and puzzling) rally in both the US Dollar Index and the S&P 500, I thought it would be good to go back starting with the March 2009 lows and see how many times this has happened recently – it turns out that there have been two times that the S&P 500 and US Dollar Index rallied simultaneously. Let’s see them.
… and “Familiarity Breeds Contempt.” Let’s take a quick pure price look at the recent five overnight gaps in the SPY – S&P 500 during the oozing uptrend that is taking place in the holiday bullish seasonality in the US Equity Markets.
I know – the title sounds… less than fun… but for those of you interested in learning intraday Fibonacci methods, today gave a great example of both the Retracement and Projection concept, and I wanted to share that lesson with you.
Let’s take a look at the SPY intraday chart (5-min) for December 28th:
Let’s take a quick look inside the recent SPY (S&P 500 ETF) rally as seen on the 15-minute intraday frame – we’re seeing volume and momentum divergences juxtaposed with rising moving averages and trendlines, so what does that mean and is that unusual? Let’s see.
Let’s take a quick look at the current “Yield Curve” courtesy of StockCharts.com’s “Dynamic Yield Curve Tool” and then compare this curve to the market peak in 2007 and the market bottom in 2003 – you might be surprised.
Remember, the Federal Reserve can ‘set’ short-term rates by altering overnight interest rates, but the economy generally sets the yield at the longer end of the curve, such as the 20 and 30 year yields, which are much less volatile than 3-month or 1-year rates.