Midday Check on Bullish Market Internals April 20
With half the day down, let’s take our usual mid-day check or ‘peek under the hood’ at the S&P 500 Market Internals to see what may be in store for price.
SP500 Teaches the Importance of Rising 20 day EMA in Trend
As I mentioned in this weekend’s update (S&P 500 at Support… For Now), we should be watching the 1,190 level which was a trendline support (which broke), but as an alternate important price to watch, we should expect at least a partial bounce (if not larger) as price tests the rising 20 day EMA at 1,180.
So far, that’s exactly what happened.
Let’s take a quick moment to see this great example of how intraday traders (particularly of index futures) could have benefited from expecting a potential ‘bounce’ or support zone on the lower timeframes by keeping in mind the EMA structure on the higher timeframe (in this case, the daily).
Key Prices to Watch on GLD and USO April 19
One thing stock market traders may have missed in the wake of the Google and Goldman Sachs sell-off Friday was that gold and crude oil prices also suffered similar declines as the stock market.
With that in mind, let’s take a quick updated look at the daily charts of GLD (Gold ETF) and USO (Crude Oil ETF) to see what levels are important for us to watch.
SP500 Remains Above Daily Support … For Now
Before panicking at the sell-off Friday, take a moment to look at the simple price structure on the S&P 500 short-term charts. For now – and until proven otherwise with a break – we’re still above critical support, so it may be early for panic.
Strangely Enough, Market Internals DO Matter – an Update
Just when it seemed like this market would continue its journey to the moon, we had a major one-day (at least) snap-back in price that erased the gains of the last week, plunging us in one day to an intraday low price not seen since last Thursday, April 8th.
Falling Friday: Giants GOOG and GS Plunge
In what can be described as the “music stopping” in a long round of musical chairs, the stock prices of Google (GOOG) and Goldman Sachs (GS) plunged Friday morning, shocking investors after both stocks had advanced in a seemingly endless rally.
Link Post: Finding a New Trading Home via SMB Capital
Steve Spencer at SMB Capital recently shared both a personal story of how he and Mike Bellafiore adapted to change by uniting shared interests and experiences via the founding of SMB Capital, which serves as a good example of how to turn misfortune into opportunity. In a post entitled, “Finding a New Trading Home,” Steve…
SP500 Intraday Market Internals Send Strong Warning Signal Apr 15
For those of you who follow key market internals on an intraday basis, you almost certainly noticed that today’s break to new recovery highs in the S&P 500 was not confirmed (really in any way) by any of the three key market internals. That’s a warning signal but not yet a ‘reversal’ signal unless we see follow-through with lower prices.
Let’s take a quick look at the internals and intraday chart as we wind down into the close on April 15th.
After Rounded Arc AMZN Challenges Resistance or Breakout
For those who follow or trade Amazon stock (AMZN), you may have noticed a very interesting pattern recently – that of a nice “Rounded Reversal” or “Rounded Arc” pattern that has now taken us back to prior resistance on the verge of another potential breakout.
Let’s take a quick look at this pattern what what levels to watch going forward for the stock.
Midday Check on Market Internals April 14
With the day half-over and the market surging to new recovery highs in “Popped Stops” breakout mode after breaking comfortably above 1,200, let’s take a quick look at the state of Market Internals.
Are they confirming the rally?