Wow – what another surprise today’s final hour of trading brought us. I’m sensing a pattern developing here. Let’s see the 15-minute chart structure and observe the divergence that preceded the action, and then see if we can count a completed 5 wave impulse – complete with mini-fractal waves – of the final potential wave…
With the US Equity market breaking to fresh 2008 lows, challenging and breaking support levels formed in 2002, let’s take a look at how the actual bottoming process formed in the 2000 – 2003 bear market. S&P 500 Bear Market from 2000 to 2003 (Weekly): The bull market peak occurred at 1,530 just before October…
Not too long ago, I evaluated the S&P 500 in terms of a possible Elliott Wave Interpretation which is still playing out as anticipated according to basic Elliott Wave Principles. Let’s update that count and see if we can glean any information from the current structure. S&P 500 Possible Elliott Wave Count – Monthly Structure:…
Today’s US equity index markets completed a classic “Rounded Reversal Day” pattern worth examining. Let’s see this pattern and also view the “optimal entry point” that confirmed that this structure was likely forming. DIA 5-min intraday (incomplete) chart (courtesy TradeStation): The day opened with a downside gap that quickly filled (or actually came just shy…
Much has been made about the recent rally into resistance on lower volume, and the subsequent sharp correction following Tuesday’s election. Let’s step inside this situation for clues on how volume could have helped you anticipate a reversal… or at least suspected that ‘things weren’t quite right’ with the recent rally. Let’s step inside the…
As depressing for the bulls as today’s equity index price action was, it allowed us to witness a near-perfect “trend day down” example. Let’s at least learn a lesson from today. Dow Jones 5-minute chart: Where do I start? First, the day began rather quietly, with price being beneath all key moving averages on the…
The volatility of October in the stock market provided a remarkable number of gap openings which provided risk and opportunity for nimble gap fade traders. With the new month upon us, let’s see how the traditional DIA opening fade gap statistics fared during October. For the first study, let’s look at DIA prices (downloaded from…
Nokia (NOK) Weekly: Nokia investors have experienced a very wild ride in a short period since the start of 2006. From a low near $16, Nokia rose to $40 per share in two years (though not exceeding is 2000 split-adjusted $55 high) and then has spent the better part of 2008 in virtually total free-fall….
With technical analysis – the art of studying price and volume through visual charting and mathematical indicators – gaining momentum, I thought it would be prudent to take a moment to discuss the three underlying foundations of modern technical analysis and why they’re important. Let’s examine them: 1. Prices Move in Observable Trends Prices have…
If you’ve ever wanted an easy, three-click method for price projection targets from what you perceive to be bull or bear flag set-ups, check out this simple method using traditional Fibonacci tools in TradeStation (similar in other charting packages with the Fibonacci Projection Tool). Let’s not discuss Fibonacci, but just the “100% Equal/Measured Move” of…