It’s the same price pattern I’ve been highlighting for quite some time now, but perhaps now is a good time to define the pattern, show it, and state what it means for traders. Reference my prior post: “Magic Mystery Buyers in the S&P 500 Define Bull/Bear Battle.” First, the pattern: A lot of people are…
As we wind down August 2010 and get ready to start a new month soon, let’s take a quick overview look at the daily charts of leading financial fund XLF and its popular double-short (double inverse leveraged) fund SKF. There’s some interesting things to note. First, the XLF Daily Chart: Starting with what jumps off…
From a pure price standpoint, as I highlighted recently in the post “Pure Price Levels to Watch in the NASDAQ, Dow, and S&P 500,” the levels I highlighted came into play in a major way on Friday, with the market sell-off stopping in its tracks at the key test of the 1,040 level in the…
India’s Nifty 50 stock market index – symbol $CNXN in StockCharts.com – has been outperforming the S&P 500 not just in 2010, but off the March 2009 stock market lows. There’s a helpful indicator or tool that doesn’t seem to be discussed all that much anymore that reveals comparative strength between markets. It’s the Relative…
Ouch – Starbucks (SBUX) shares shattered confluence support this morning, both on the weekly and daily frames. Will the sell-off materialize that this support break suggests? Let’s take a look first at the Weekly frame: First things first – there was a persistent negative momentum and volume divergence (lower indicators) that undercut (failed to confirm)…
Perhaps there should be a disclaimer for traders in Potash (POT) stock: “This stock is for Risk-seekers only.” Why’s that? Over the course of the last three years, Potash shares skyrocketed from $40 per share to peak at $240 per share – a 600% increase – only to plunge 80% in less than half the…
Rather than getting down in the nitty gritty and doing a detailed Elliott Wave Count on gold – or any market for that matter – I often find Elliott Wave concepts best suited for showing me whether a market is in a “Corrective” or “Impulsive” phase, and knowing that gives me insights into what the…
I thought today would be a good chance to take a quick look at the daily chart structure of the S&P 500 and highlight the recent negative dual divergences into overhead resistance and the anticipated ‘mini-crash’ (can we call it that today?) that followed from that set-up. Let’s see it: Let’s lead up to today’s…
Is it important to study today’s charts for insights and lessons to learn from the day’s structure and opportunities? Absolutely. Not only can you replay your performance and pinpoint where you could have traded better, but you’ll increase your pattern recognition and trade set-up skills by seeing these classic patterns repeat. Case in point, in…
Shares of Goldman Sachs stock (GS) remain trapped between two key price levels as traders await a breakout from this range. Let’s take a focused look at the daily chart of Goldman Sachs (GS) and pay specific attention to the two key levels to watch on the chart. Taking a quick look, we see price…