We can learn valuable lessons by studying classic examples of price action – in this case, a large divergence into snap-back reversal event (which stuns traders when they’re caught in the sharp sell-off). Let’s take a quick look at a recent clear example in Keurig Green Mountain Coffee Roasters (GMCR): The Daily Chart revealed a…
Crude Oil traders have found it impossible to call a bottom (reversal) in the sharp decline in Crude Oil prices. Admittedly I’ve fallen victim to trying to call that elusive bottom in this strong collapsing market but so far it’s not been the case that oil has bounced for anything but a small retracement against…
Like any year, 2014 has seen its share of ups and downs in the market (more ups than downs, actually), so I thought it’d be interesting to compare the up and down days for the S&P 500 so far in 2014. If anything, it’s a different way to see price and study the character of…
Pop Quiz: Without peeking, can you identify which month had the best day for the S&P 500 in 2014 and then which month had the worst day so far? How about if I said TODAY was the best day of 2014 for the S&P 500? That’s actually true. If the best day for 2014 happened…
You may not be aware that Disney (DIS) is one of the strongest trending stocks in the Dow Jones and S&P 500 right now and has been since its breakout in mid-2012. Let’s start with the Monthly Chart (where the magic is) and study this stock from there: I wanted to focus this post on…
I’ve been hearing a lot of discussion about the “Death Cross” in the Russell 2000, particularly in the IWM ETF. Let’s identify what a “Death Cross” is and then test out prior performance of “Death Crosses” specifically in the IWM Russell 2000 ETF. Here’s a current chart – and we’ll step inside it all shortly:…
I know, it’s not the most compelling title, but it is very important for all of us to monitor the Volatility or Cycles of Market Internals, especially those of us who use them in our trading or analysis. Let’s update our TICK Volatility Chart and note the current important intraday levels for trading with the…
If you’re a trader or follower of crude oil, you’ve noticed the increased volatility and intraday gaps with reversals over the last few sessions. Let’s take a look at what’s happened and where we are now in the market (the lessons goes beyond crude oil). We’ll start with the transition from “stable” to “unstable”: Before…
If you look closely at the current market rally, you may see something eerily familiar. Let’s chart the current intraday rally (as we’ve been highlighting) and compare that to a familiar friend on the chart and learn a quick lesson about technical analysis in the process. I’m using the @ES futures contract (S&P 500) to…
Is it possible that US Steel (X) is finally catching a bid from a breakout (and reversal pattern) from a long-term resistance level? Could this be the start of a new long-term uptrend in price? Let’s take a look at the Weekly and Monthly Chart to give us some clues for a longer-term play. First,…