This is a special ‘breakdown edition’ of my intraday update posts, which takes a focus on three competing price patterns at the recent highs and then adds quick levels to watch for confirmation.
Let’s see the current SP500 30-min chart an hour after the open on May 4:
I’ve written previously about the long-term triangle in Exxon-Mobil and had a reader request to update that analysis, and this time I’ll add a monthly arithmetic and logarithmic trendline to the mix.
As we start May, we must make note that the short-term trend of the S&P 500 (and other US Equity Indexes) has devolved into a consolidation trading range with support and resistance boundaries as shown.
Let’s take a look at the trading range and what it might mean going forward.
Even if you don’t trade Baidu.com stock (BIDU), then you might still be aware of the large earnings gap that sent the stock surging $80.00 (13%) higher last Thursday, only to give back some of those gains with a bearish engulfing candle on Friday.
Let’s take a quick look at the last three gaps in BIDU stock and try to assess how that plays into the current large gap.
AK Steel (AKS) recently sold-off sharply after breaking down from a daily triangle pattern – a great example of the concept.
Let’s take a look at the daily chart then see the damage done and potential support level to watch on the weekly frame.
With April 28th’s Fed decision to keep the Fed Funds rate unchanged, let’s take a look back on the last 10 years to see the relationship between the Fed Funds Rate and the S&P 500 … which might be very surprising to you.
The EURUSD FOREX pair has been respecting dominant Andrews Pitchfork trend channels both on the way up and on the way down. It serves as an educational example and current reference levels for areas to watch going forward in time.
With Tuesday’s sharp sell-off taking the US Equity indexes down roughly 2% each, let’s take a quick “fly-by” of the Daily US Equity Index charts to see what preceded the fall and what levels to watch as a reference now.
Once again, I’m updating a successful turnaround swing in the market that was highlighted in advance by the key Market Internals – as I wrote in yesterday’s update: “Market Internals Undercut New Highs in S&P 500”. Read that post for the status of market internals yesterday.
Today, we see the aftermath of the distinct non-confirmation/divergences in internals, showing us another lesson that “Internals DO Actually Matter.”
For the third time in the last few days, we’ve broken slightly under the rising dominant trend channel as seen best on the 60-min chart of the S&P 500.
So far, that channel has held, but today, we’ve broken slightly under the channel so let’s take a hyper-focus on these price levels and what to watch: