During a bit of weekend analysis, I found this particular indicator/chart really interesting, as the S&P 500 has literally been contained within the boundaries of the 1st and 2nd Standard Deviation (‘sigma’) bands for a good portion of the ride up from September. Let’s see what Sigma Bands are – basically a more revealing Bollinger…
Did you know that the Dow Jones Industrial Average and the ‘confirming’ Dow Transports Index were mere points away from a fresh new 2010 high – which would make a new recovery high not seen since September 2008? That’s just before the worst of the 2008 Bear Market hit – and we’re close to topping…
Anyone who knows me knows how big a fan I am of “Market Internal” divergences (or momentum divergences as well). They’re one of my favorite methods of market analysis, as they seek to reveal the health – or weakness – of a trend in progress. Divergences often appear ahead of big turns in price, and…
So far, the S&P 500 has gently crept to the two shorter-term upside price targets after the breakout from resistance at 1,130. Now that the index tests the second upside target, what does the daily chart show and what are the odds of breaking through… or falling down from here. Let’s take a quick look:…
I was playing around with a new indicator in TradeStation that shows a similar style of Market Profile (Time, Price, Opportunity) charts and wanted to show the recent progression of the big move up recently in the S&P 500 (SPY). Let’s take a look at the chart and see what the “profile” reveals: (Click for…
I wanted to take a moment and remind you of the importance of analyzing price “Structure” when setting up what type of trades you are wishing to take, or how to be positioned for a swing or longer-term trade in a given market. Price Structure is probably the simplest form of Technical Analysis, but I…
Thursday’s intraday activity in the markets gave us a great example of the not-so-common pattern of an Arc Trendline Reversal Break (I’m sure there could be a better name for that), which is a good opportunity to play a reversal trade off a price climax low. Let’s first see the pattern, learn the concept, and…
If you’ve been watching shares of leading stock Caterpillar (CAT) recently, you probably noticed something extraordinary unusual – at least from a price standpoint. In a permanent reminder of why watching price levels on the higher timeframe is important to both investors and traders, Caterpillar shares again brushed up into an overhead brick wall of…
Here we are again, testing the key 1,130 target overhead resistance level for the third time in the last three months. The simple question is “Will resistance hold or will it break?” and of course you can get a lot more complex than that, but I strongly advocate you think in those terms – as…
The markets for some reason are much more sensitive to pattern repetition lately – so that begs the question: “Will the current rally pattern continue?” Oh – first, let’s define the rally pattern and then see what the current ‘pattern completion’ and target is. Officially, we’re in a sideways trading range that began in June…