With a new week upon us, let’s take a quick look at where the major US Indexes stand. Dow Jones: The Dow has violated its 200 day moving average, and volume has accelerated as price has fallen through June. Price also has formed a new momentum low on the chart – in real terms, this…
Technology stocks have been in the news lately, so let’s take a quick look at three very popular stocks showing similar patterns: Research in Motion (RIMM), Apple Inc (AAPL) and Google (GOOG): RIMM Daily: RIMM missed earnings slightly, which sent traders punishing the stock mercilessly, plunging it beneath its strong trendlines and key moving averages. …
Friday’s action almost turned out to be another trend day down, but a recovery into the close prevented this development. Let’s look at some of the idealized trades we could have taken during the day, to learn more about these patterns should they develop soon in the future. The DIA – 5-minute: The day began…
After forming two seim-dojis in a row (indicating relative indecision), the market unveiled a pure trend day today, allowing quick and steady profits for those who were ready to trade it for all it was worth. How might you have traded today’s trend day? Let’s look. The odds were slightly higher that a trend day…
The Dow Jones Industrial Average tested the March closing low today, with a large, sudden plunge to the test and a solid recovery (so far) off this level. The market is at a very critical juncture now. The ‘zoomed in’ daily chart: Price gapped lower this morning and then careened to test the March 2008…
The Utilities Sector (XLU) has shown relative strength in the background of the recent market downswing, and still trades in a respective chart position. Let’s look at its chart and its comparison to the S&P 500. XLU – Utilities Daily Chart: Since the March lows, price has steadily and comfortably trended upwards, and price now…
US Steel (X) broke a resistance level today, which could signal higher prices yet to come for this basic materials sector stock. Daily chart: Although momentum seemed to be diverging, the indicator broke a trendline just ahead of the eventual price break above the $185 resistance zone. The stock has had an impressive run over…
Apple Inc (AAPL) is a highly publicized stock which has exhibited a smooth trend recently. Is the most recent action in AAPL a steady retracement or a full-blown reversal? Let’s look to the charts for some clues: On the weekly structure, price has just completed a large run-up in price on declining volume (throughout 2008). …
Have you been keeping track of what the larger picture is on the charts of the major US Stock Market Indexes? If not, let’s take a moment to see what the Dow, NASDAQ, and S&P look like on their monthly charts. S&P 500: The S&P is beneath its peak in 2000, and appears to be…
Google is currently ‘trapped’ beneath its key moving averages on the daily chart, and finding key support on the weekly chart. Might the recent consolidation pattern give way to a larger breakout sometime soon? Let’s look at the daily chart to see the consolidation: Price is strangely trapped between its key moving averages, and is…