Jul 17, 2014: 12:23 PM CST
What quick-reference levels should we be watching on the S&P 500 and the Dow Jones Industrial Average and why are the trendline patterns different?
Let’s start with the S&P 500’s rising wedge pattern:
There’s certainly more than one way to draw similar trendlines, but the pattern above shows a compressing or potential “Rising Wedge” pattern developing in the S&P 500.
Our key focal points are the easy-to-remember 1,970 (today’s spike-reversal low) and 1,982 which has developed as a short-term resistance/reversal level.
Note the negative divergences that undercut the early July and present rallies into the 1,980 level.
We’ll be neutral between these two levels and otherwise breakdown bearish on a clean impulse under the 1,970 region. Continue Reading…
Jul 16, 2014: 12:05 PM CST
The bull trend continues higher today but what levels are important and which stocks are possible trend day candidates?
Let’s start with our Intraday S&P 500 Chart and follow-up with our list of trending stocks:
A simple S&P 500 price level planning chart shows that the 1,976.50 pivot is our key focus for intraday support.
Our other focal level is the prior high just above 1,980 and this morning’s high into 1,984.
A clean breakthrough above the morning high suggests that buyers will trigger a short-squeeze to propel the index into the all-time intraday high of 1,985.50 (July 3).
Technically we’ll look to be neutral within today’s range; bearish under 1,976.50; and otherwise breakout bullish on a clean impulse above the morning high. Continue Reading…
Jul 14, 2014: 4:19 PM CST
Have you ever been stumped by elusive market reversals?
Would you like to learn the five most common steps a market takes directly ahead of a reversal?
More importantly, would you like to know how to anticipate and trade price reversals following this five-step process?
Join me live with the eTrading Expo this Wednesday, July 16th at 3:00pm EST for a special live webinar entitled “Five Steps for Spotting and Trading Rounded Reversals.”
If you’ve ever been in doubt about when to stop trading with a trend that is showing clear signs of reversal, or if you would like to increase your trading skills about how to recognize opportunities to enter a trend reversal, please take the time to join us live Wednesday.
You’ll also learn the following:
- A Check-list to Measure Odds of Reversing
- The safest spot to enter a Trend Reversal Trade
- How Momentum and Volume are Key for Confirmation
- What Indicators work best … and Which Mislead you
The educational event is free and open to all traders – you’ll just need to register and attend live.
You may also view presentations from other educators during the exciting eTrading Expo this week.
See you there!
Jul 14, 2014: 1:00 PM CST
What should we be watching in today’s market breakout?
Let’s start with our “Sector Breadth” Chart and follow-up with our intraday scan list of trending stocks:
Perhaps not surprisingly, intraday Sector Breadth paints a very bullish picture at the moment.
Our worst performing sector is the defensive Utilities space and the three strongest sectors include Energy, Industrials, and Financials.
This type of Sector Graph is what you want to see if bullish; offensive sectors are strong while defensive sectors are weak. Continue Reading…
Jul 14, 2014: 12:14 PM CST
Amazon.com (AMZN) shares continued with follow-through from a breakout buy signal I highlighted last week.
Let’s update our chart and highlight the new levels to watch after the breakout triggered:
Start with last Friday’s AMZN post for additional background and to set the stage for today’s Breakout Follow-through.
Today’s quick update shows the follow-through and the break above both th3 $340 level and now (today) the rising 200 day SMA into the $345 per share level.
This triggers a potential continuation move even higher through the “Open Air” pocket straight into the $360 first target – if buyers can break through the next resistance target into $360, then the “Open Air” pathway continues to the prior high near $380 per share.
Volume and momentum continue to suggest bullish strength (note the arrows). Continue Reading…