I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Today’s post at the Green Faucet’s Technican’s Edge Column serves as a reference for the current dominant Fibonacci Retracement levels to monitor. I’ll re-copy some of the charts here, but the full commentary is at the column. Traders and investors monitor Fibonacci Retracement Levels for the following reasons: to take profits once a level is…
I wanted to highlight an important lesson we can learn from the recent breakout action in Research in Motion (RIMM) as it relates to “Open Air Pockets” and how traders can manage risk and take advantage of these opportunities as they develop.
Let’s take a look and see what RIMM’s recent chart can teach us.
I’m never one to pass up mentioning a key negative divergence in price and market internals, and we had another one set-in on today’s market action.
Divergences aren’t perfect, so let’s look at the structure of the most recent development, this time using the NYSE Index itself to compare to its internals.
In an interesting turn of events, the Russell 2000 “Small Cap” Index broke to new recovery highs last week in a sign of bullish strength, but now faces headwinds from the weekly 200 period moving average.
Let’s take a quick look at both the daily and weekly Russell 2000 chart to see what level we should watch for important clues as to the strength – or pause – in the recent strong rally.
Today showed another example of the theme I’ve been highlighting – literally – on the blog, showing multi-day rallies in the S&P 500. Today confirms that we are in yet another ‘highlighted zone’ as has been the cycle of the past.
Let’s take a look at these regions, the present chart, and what to expect going forward.
I wanted to follow-up and highlight an interesting point in the recent price rally in Google (GOOG) – specifically with regard to the price bounce off the key ‘last-support’ level I previously mentioned.
It’s an interesting lesson that’s worth repeating – here’s the chart:
Yet again, we’re seeing a situation where we have a multi-day decline in the three-key market internals when compared with the price of the S&P 500 or SPY ETF.
That sets up a major non-confirmation and increases that odds that we’ll see a price reversal/retracement to test lower levels, barring any unforeseen bullish news here.Yet again, we’re seeing a situation where we have a multi-day decline in the three-key market internals when compared with the price of the S&P 500 or SPY ETF.
That sets up a major non-confirmation and increases that odds that we’ll see a price reversal/retracement to test lower levels, barring any unforeseen bullish news here.
That’s a question I’ve been highlighting frequently, with the type of day structure repeating, almost forming a script.
What’s interesting is that – as of 1:00 EST – I can highlight the direct comparisons so far in today’s trading that are identical in everything but price to yesterday’s morning action.
There’s no guarantee that the market will continue following the script, but if it does, why not try to take advantage of it, as if the pathway forward for price was made clear.
I couldn’t pass up posting on the almost perfect short-term rising parallel trendline channel that has formed on the intraday chart of Crude Oil futures.
It allows us to observe a key channeling formation and learn an important lesson – that divergences can persist and give false signals while price remains in a powerful trend, and that it is more important to watch what price is doing in order to generate trading signals – an important lesson on all timeframes.
It’s common to ask the question when price breaks a key resistance level, “Is this a real breakout that will last, or is this just a short-squeeze situation that won’t?”
That’s the operative question now – let’s take a look at the price breakout in the S&P 500 and try to make a determination with the information we have so far.