I’m not a huge fan of intraday pivot points personally, but even I have to admit they can be effective when combined with other methods of finding potential turning points or support and resistance during your intraday trading activities.
Today was a day where standard pivot points worked well at key turning points, allowing you to take off profitable positions (play for a target) or put on new positions (enter at a potential reversal).
Wednesday’s morning action brought expected selling as forecast by the recent declines in market internals (mentioned in yesterday’s update), but is that all the selling the market can muster?
A reader asked me to update the March 30 post “A Rounded Arc Forming on the NASDAQ Index” and I thought that was a good idea, given that the arc is continuing to form on the intraday charts – spanning two months now.
Let’s take a look at the updated “NASDAQ Arc” charts:
In following up from this afternoon’s post, I wanted to show a grid of the main nine AMEX Sector SPDR ETFs distance from the 2007 (or 2008) high, as a gauge of the recovery (and distance to new highs as of April 6, 2010).
With over half the trading day behind us, let’s take a quick check on the pulse of the three key Market Internals for mid-day April 6, 2010.
File this under “In case you missed it,” the XLP Consumer Staples ETF is knocking on resistance that – if broken – would result in an all-time price high (not just new bear market recovery high).
Surprised? So was I (especially if you don’t watch this fund actively).
Today was the successful resolution of a short-term pattern that formed in the SPY intraday timeframe, giving us a great example of a symmetrical price triangle breakout, move back to test the apex (breakout zone), and the profitable move that resulted.
Thanks to a reader for pointing out this near-perfect rounded reversal pattern on Goldman Sach’s (GS) intraday chart, which takes price currently into a key “make or break” support level.
Let’s take a moment to see the Rounded Reversal example as well as the key support price that Goldman is challenging currently.
First, the Rounded Reversal as seen on the 60-min chart:
I’m pleased to announce that I will be participating in a Webinar Event with Tom Busby of DTI.com, and wanted to invite you to the free event, which will take place next Monday, April 5th at 2:00pm CST / 3:00pm EST just prior to market close. My portion of the webinar will focus specifically on…
The big news last week – that you might have missed if you weren’t watching – was in the non-stop rally in Crude Oil after bouncing off support and breaking two potential price patterns with bearish overtones.
Let’s see the rally and the two broken patterns: