Intraday Divergence and Reversal Planning for Crude Oil

Aug 18, 2014: 12:55 PM CST

Crude Oil may be forming an intraday reversal pattern – with divergences – off an important short-term support level.

Even if you don’t trade Crude Oil, let’s study the Color Structure chart and learn a lesson on intraday trends, divergences, and reversals.

We see a Color Structure chart on the 5-min (very short-term) intraday scale with brief but persistent intraday trends.

Momentum (3/10 Oscillator) Divergences formed at the reversal points for the short-term price trends.

Now, we’re planning a potential reversal play (aggressive opportunity) up off the $93.40 @CL futures level (look for a comparable level in the USO or related ETFs) given the positive momentum divergences and recent “trendy” behavior.

Also note the breakthroughs of narrow (yet parallel) price trendlines to set the stage for a reversal (trendline breaks can be entry/exit signals). Continue Reading…

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NASDAQ Breaks to New Highs on Relative Strength

Aug 18, 2014: 10:57 AM CST

If you’re an S&P 500 or Dow Jones only trader, you may be missing the fact that the NASDAQ broke out to new highs this morning and the Russell 2000 index is close on its heels to its own fresh new breakout (while the S&P 500 and Dow lag behind).

Let’s chart the breakout and then compare a “Relative Strength” chart to highlight what’s going on behind the scenes.

I just posted about the S&P 500 this morning so be sure to view the background beyond the NASDAQ from this morning’s post.

The NASDAQ gapped and trended higher (trend day so far) above the resistance cluster into 4,490.

At this moment, short-sellers are losing money and are rushing to buy-back to cover losses (which – perversely – helps propel the index even higher as more short-sellers are forced to buy-back to cover losses).

New breakout-buy signals are triggering for bulls as well, resulting in a potential “feedback loop” of upside price action.

As long as price remains above this pivot point, buyers are firmly in control of the market. Continue Reading…

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On and Up Toward New Highs for SP500

Aug 18, 2014: 10:34 AM CST

Today’s bullish short-squeeze and continuation breakout activity confirms the bullish upward pathway that may continue to lead – once again – to new highs for the S&P 500.

Let’s update our pattern, view the pathway, and study what opportunities exist for us.

First, take a look at my two prior updates on this topic (before today’s confirmation):

Planning a Breakout (from a Repeat Pattern) in the S&P 500

S&P 500 “Breaks on Through to the Other Side

Decision Point for the Dow Jones

Today’s session further places the odds on the bullish side as price moves up above resistance and – likely (though not guaranteed) – toward the prior high into 1,990 (or even 2,000).

Quite simply, this is a “Repeat Pattern” as I’ve been highlighting to members and even on the open blog. Continue Reading…

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Uncovering a Hidden Value Area for Apple AAPL Shares

Aug 15, 2014: 2:33 PM CST

What are our Color Value Area Charts revealing about a key magnet price area to watch in Apple (AAPL)?

Let’s take a look, starting with the Daily Chart:

The TradeStation Indicator is the Trigger Charts Radar Indicator, designed to show “Market Profile” concepts in a colorful, visual format.

For simplicity, focus your attention only on the yellow lines (and the tight red clusters near the yellow lines) which represent “Time at Price,” or significant levels where both price has traded at “high volume” nodes (levels).

Keeping it simple, we can look back to prior yellow lines and compare them to current yellow lines on the chart.

We see a “hidden” triple node (three yellow lines) near the $95.00 per share level which should be our current focal point.

Above that we see a node into $100 per share which appears to be a likely target towards which price is being pulled. Continue Reading…

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Interesting Breadth Chart for August 15 Intraday Stock Scan Update

Aug 15, 2014: 1:03 PM CST

We don’t usually have exciting Sector Breadth Charts to show but today is an exception.

Let’s jump straight into our August 15th intraday update and start with the unusual Breadth action:

Usually the Sector Performance is relatively similar with only minor changes among the sectors.

Today however, we have a huge spike in Energy and Utilities – something that bulls or buyers don’t necessarily want to see.

Our worst performing sectors are Financials and Industrials and that’s clearly something bulls don’t want to occur.

All other sectors are relatively similar in their weak performance today. Continue Reading…

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