I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
For the third time in the last few days, we’ve broken slightly under the rising dominant trend channel as seen best on the 60-min chart of the S&P 500.
So far, that channel has held, but today, we’ve broken slightly under the channel so let’s take a hyper-focus on these price levels and what to watch:
The S&P 500 began Monday April 26th on a push to new recovery highs, but it did so laboriously, forming negative divergences in all three key market internals we monitor.
With that in mind, let’s take a look at current lunchtime market internals in the S&P 500 for April 26:
With Goldman Sachs (GS) frequently mentioned in the news in the wake of the fraud allegations, intraday traders have sought to profit from the swings and price movement that has occurred since GS fell so sharply on April 16th.
Let’s take a look at the ‘wakes’ or aftermath of the sell-off, failed ‘bounce,’ sucker gaps, and current breakdown from the descending triangle that formed.
Gold prices are in a peculiar position – at least on the daily chart – in terms of short-term price resistance and indicator support. Gold can’t stay between these levels for long, so it might be helpful to know them in advance of a breakout either way.
This is another update post from my prior updates last week,
“S&P 500 Remains Above Trendline Support… for Now” and
“Rising Trendlines… the Only Thing that Matters Now?” (still a yes it seems).
In a prior post from April 19th entitled “The S&P 500 Teaches the Importance of the Rising 20 day EMA,” I highlighted how the intraday low was the exact value of the rising 20 day EMA… and now the market has bounced yet again off that level on Thursday, underscoring the importance of watching higher timeframes on intraday charts.
Let’s take a quick look at the rising trend channel lines ‘auto-generated’ from the Andrews Pitchfork charting tool to note where we’ve come and where we are now between these lines.
Reading Market Internals is essential for intraday traders and also is helpful for swing traders, if you compare days to days and swing highs to corresponding internal highs.
Let’s get an update for April 21 and then also note the three recent clean divergences – all of which have produced a turn in the market place.
You know I’m a big fan of studying price patterns and looking for those patterns to repeat, and it appears that we have a near-identical repetition – on a smaller scale – of the move down and rally from the February low, which has played out over the last few trading days.
Let’s see them and compare.
With half the day down, let’s take our usual mid-day check or ‘peek under the hood’ at the S&P 500 Market Internals to see what may be in store for price.