I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Last Friday, I posted a comparison to the 1987 Crash to Today’s “Crash/Recovery“. The chart below is the 5-min intraday look at the 1987 October 19 crash: This Monday, as a result of the European Bail-out Plan, we see the pattern complete the “Recovery” portion of the crash. Let’s take a look at the current…
This morning’s early activity reminded me of the saying “The market exists to confuse the majority of the people the majority of the time.” The sharp sell-off confused a lot of people last week, while this morning’s rally confused even more people, making the market an equal-opportunity confuser of bulls and bears. However, in the…
As I wrote in this morning’s post, the market needed to digest or consolidate after yesterday’s sell-off… and that’s what we’re seeing now.
The market intraday has formed a near-perfect symmetrical triangle with clean boundaries you should watch as short-term reference levels.
We’ve already heard comparisons in terms of the fear, panic, confusion, and volatility of May 6, 2010 to October 19, 1987, so let’s look at the pure price charts to see if the comparison extends beyond that.
First, a look at the daily S&P 500 chart of the run-up then crash of 1987:
Today will be one of those days we reference for a long time to come.
On such days, it’s helpful to take a breath and assess the cross-market movements as seen on the five key inter-market ETFs as shown below.
Let’s look at the daily chart and take a quick overview of the S&P 500, Gold, Oil, The Dollar Index, and Bond/Note Prices.
So far, buyers have failed to defend the critical 1,150 level, and Market Internals have taken a dramatic turn to new lows, confirming the sell-off and hinting that lower prices are still yet to come. Let’s take a look at the signals that Market Internals are sending us: We follow Breadth, TICK, and VOLD (Volume…
Sellers took the S&P 500 down to the key 1,150 important support level, which was the target if the 50day EMA was broken. Now that we’re here, let’s pay very close attention to whether buyers step up to support the market here, locking in this key support level… or whether they fail. Refer back to…
We’ve had a volatile start to the first week in May!
Let’s take a quick moment to assess the damage on the three main US Equity Index charts for reference levels to watch going forward.
After Tuesday’s sharp sell-off took price to the rising 20 day EMA, the morning session on May 5th greeted traders with a swift breakdown of the 1,170 level… but it did so on slightly stronger relative market internals. Let’s see an updated chart and what levels to watch for reference for today’s trading session. We…
Traders paid a lot of attention today to the S&P 500 testing its rising 20 day EMA, but what you may have missed today is that Crude Oil did the exact same thing and now rests on its rising 20 EMA critical support line.
Let’s take a look at the chart and then see how oil made the rounded-reversal sell-off that took us to where we are now.