A MidDay Check on Divergent Market Internals SPY March 1
Let’s take an afternoon look at the ‘popped stops’ rally of March 1st, which shows divergences in Breadth and TICK – both important non-confirmations going forward.
Conflicting New Recovery Highs in XLP and XLY Consumer Sectors
While doing some weekend research, I came across an interesting development.
At first glance, I saw that the Consumer Staples Sector SPDR – XLP – was making new recovery highs (new 2010 highs). My first thought was that this was a very bearish development that could be underscoring risk-aversion in that money is flowing into ‘safer’ stocks according to the Sector Rotation Model.
My next thought was to compare that development with its sister sector, the Consumer Discretionary/Retail Sector – XLY – to see if we were seeing weakness there. To my surprise, I found that we were seeing new 2010 and recovery highs in the ‘risk seeking’ or offensive Retail Sector as well.
Dual Intraday Divergences and the Reversals that Follow Feb 26
Following up from my previous webinar on trading intraday ‘dual’ divergences (TICK and Momentum), I wanted to show the most recent example in the SPY intraday with regards to the negative divergences that resolved in a downward swipe today, which serves as an excellent example of the concept.
Busted Head and Shoulders and Levels to Watch on Japanese Yen
Even if you don’t trade or look at the Japanese Yen Index charts, the Yen Index formed an interested “busted” (so far) head and shoulders pattern on its daily chart that is worth an educational look.
Beyond that, let’s look at the key levels to watch for an upside or downside break of current trendline boundaries.
Market Follows Script Again with Failure to Fall and Popped Stops
I’ve been asking the question, almost rhetorically, “How many times will the market repeat the same pattern,” (see prior post for previous examples) and the answer is “at least one more time… today.”
What pattern is that? And how can knowing the pattern help your trading? Let’s take a look.
Dollar Index Rides the Trendlines Higher Feb 25
In an interesting development, the US Dollar Index (shown here in the @DX futures contract) has been riding a clearly defined trend channel higher, with a few bumps along the road.
Let’s take a quick look at the current structure and note the most important price levels to watch going forward – in the event of any sudden price breaks.
Key Structure and Level to watch on EURUSD Feb 24
A few readers have asked me to post on the current state of the EURUSD FOREX pair, and indeed there’s something interesting going on here and it’s definitely worth a look.
Let’s see a long-term structure chart along with the key level to watch in the pair as we form positive divergences at the 61.8% Fibonacci Level – a very important inflection point for sure.
The Rounded Reversal and Bear Flag in Silver Daily
Silver prices are forming an interesting potential reversal (or downside continuation) pattern that’s worth a look, as we’re coming up into the key resistance level that will make or break the current short-term bear flag pattern that has formed within a larger term “rounded reversal.”
Intraday Rounded Reversal and Divergences Example Feb 22
The market gave us another classic example of the importance of monitoring price along with something else, such as a market internal or key indicator.
In this case – February 22 – I wanted to show today’s lesson of how a “Rounded Reversal” pattern formed alongside positive and negative TICK divergences, and how this set-up some great opportunities… so that you’ll be better prepared the next time a similar set-up occurs.
Join Corey’s Wednesday Webinar on Trading Intraday Momentum and Internal Divergences
I wanted to invite you to a special webinar event I will be conducting Wednesday, February 24, 2010 just after market close at 4:30 EST / 3:30 CST entitled “Trading Intraday Momentum and Market Internal Divergences,” sponsored by Trader Kingdom and Mirus Futures. While divergences can produce powerful signals of a likely market turn ahead,…