Days like this remind us of Mark Douglas’ “market realities” as explained in Trading in the Zone – specifically, “The market can do anything!” Let’s take a look at the current structure of the S&P 500, note the most important levels to watch, and go back to a reminder about market realities as they exist…
It seems as though the Federal Reserve once again is taking aim squarely at the US Dollar Index with talk of ‘likely’ (or possible) injections of liquidity into the economy in the form of a second major Quantitative Easing plan should the economy falter. While QE may indeed help stocks and the general economy –…
I wanted to invite you to today’s (Friday, September 24) online chat session during lunch – 1:00 EST / 12:00 CST – with the MoneyShow’s eTrading Expo entitled: “Five Ways to Enhance Your Retracement Trades.” The link above is the direct link to my topic page and registration info. It will be a brief 20-minute…
What do market internals say about the current structure of the S&P 500 (broader stock market)? You might guess they’re diverging and you would be correct, but let’s pull the perspective back and see the complete rally off the recent August low of 1,040 to the present September peak at 1,140. S&P 500 with Market…
Shares of Apple Inc (AAPL) broke to new highs this week after rallying the last three weeks in a row in a breakout that investors and traders have been expecting was due. Let’s take a quick look at the structure of the breakout and see what the charts have to say about the stock –…
I’m pleased to announce that I will be conducting an educational webinar this Wednesday after market close at 4:30 EST / 3:30 CST. “Trading Intraday Price Reversals Using Momentum Divergences.” The event is sponsored by ICE Futures and eSignal Learning, and hosted by Trader Kingdom. Event registration is free, and you can sign-up to attend…
This morning, we’re getting a quick surge above the key 1,130 level and I wanted to do a quick update on that and focus on standard tips for trading breakouts – particularly in regard to confirmation and the question “Is this real or a trap?” First, the Daily Chart so far: The level is clear…
To active traders, the key price levels to watch on the S&P 500 are abundantly clear – but did you know there are two simple indicators that are revealing these levels clearly on the monthly frame? Let’s take a look – first the standard Monthly SPX Chart: I was working on the monthly timeframe for…
This week has been a little strange toward the end in terms of standard market relationships, specifically with those of equities (seen by the S&P 500) and Oil, and then equities and the Volatility Index (VIX). Generally, oil moves in the same direction as stocks while the Volatility Index moves opposite stocks, but over the…
With the market completing an almost exact push up to the S&P 1,130 level, as has been the case two times in the last two months, let’s take a look at the current state of market internal (divergences) and compare those to the prior two times to see if we can get insights into the…