I’m a huge believer that “history repeats,” and one can often see similar situations developing now that formed in the past. True, nothing repeats with exactitude, but you can often learn lessons – mainly about assumptions and outcomes – from studying similar chart formations that have developed in the past. Let’s take a look at…
The S&P 500 – and general US Equities – have been mired in a two-months sideways trading range with clear upper and lower boundaries. Though this week gave us a mean “Bear Trap,” price returned within the parameters of the persistent trading range. Let’s update these levels and put this week’s ‘trap’ action in proper…
What is the broader Sector Rotation Model saying about the current state of the stock market? Let’s take a look from two perspectives: January to October (year to date) and then from the May 2011 peak to present. First, the longer-term year-to-date Sector (ETF) performance: Before we look at the current picture, feel free to…
Commodities – along with equities – have fallen sharply since their respective May 2011 market peaks. Let’s take a look at the breakdown in the CRB (Commodity) Index and note the critical confluence reference support level upon which the index sits currently. First, let’s start with the May peak of 370. I showed previously that…
After consolidating in a similar “Range Value Area” for the majority of 2011, the US Stock Market Indexes have settled into a NEW consolidation phase that calls for updated boundary levels. Let’s take a look at how the Range Alternation Principle developed the two large Value-Area boundaries of 2011 and what the current index levels…
Previously, I explained what a “Creeper Trend” is, how it develops, and – if you’re willing to feel uncomfortable – how to trade it (it’s not your typical trade set-up). I wanted to follow-up that lesson with a great example of a “Creeper Trend” formation (trade entry), Trend Reversal (with excellent positive momentum divergence example),…
Many traders report difficulty in trading “Creeper Trends” or “Oozing Trends” that neither give reversal signals nor safe entry signals. Let’s take a quick look at the @ES (S&P 500) and @CL (Crude Oil) Futures contracts to see the overnight action that provided the framework for today’s continued “creeper” intraday trend moves on September 27th….
With the US Equity Market sitting currently atop a longer-term Fibonacci cluster level, let’s take a look at the Dow Jones, NASDAQ, and S&P 500 in terms of their recent “Bear Market” and “Bull Market” Fibonacci retracement levels for reference. Let’s start first with the S&P 500: Click each chart for a full-size image –…
I’m pleased to announce an upcoming webinar event that needs your participation! Hosted by Trader Kingdom and ICE Futures, I will be presenting an interactive webinar entitled: “Designed by Traders: Trading Trend Reversals” and here’s how we need your input. We’ll be collecting reader questions in order to shape the content and examples I present…
With markets in a turbulent/volatile phase on the lower frames, it can be very helpful to slow the pace down by pulling up to a higher timeframe. Let’s take a look at two major Fibonacci Cluster levels that help us make sense of the current S&P 500 index activity: Starting with the larger – red…