I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
After completing a perfect bull flag (in pure text-book example) as expected, the US Dollar Index is now forming a bearish ‘sell’ signal at the target of $80.50, which is worth our attention.
Pardon the purposeful alliteration, but let’s look at the Daily Dollar Doji Sell Signal:
TLT is showing a notable contraction in price and a compression between key daily moving averages that is worth watching for a breakout move.
Let’s take a look at the daily chart to see this squeezing structure.
It’s hard to come up with a good title that gets you to read a post about “Fibonacci Confluence,” but it’s an important and useful tool you can learn – if you haven’t already – that can help you uncover possible targets for intraday traders to play for, and also areas of hidden resistance (or support) that sets up a reversal trade when combined with other indicators.
Let’s take a look at today’s Fun Fibonacci Confluence in the intraday SPY.
So much attention lately has been devoted to the “PIIGS” countries and economic concerns, but I wanted to take a special look at Spain’s market index along with the iShares ETF to note a classic Rounded Reversal pattern that could be ending into a likely support area.
It’s true that failed trades sometimes can teach us more than successful trades, especially if we take the time to learn what went wrong – as in “Did I make a trading error” or “Did the market do something unexpected?”
There was a particularly high probability trade set-up that triggered late Friday afternoon that failed due to the afternoon surge, but there were a few hints and lessons we can learn from this experience, so let’s take a look!
With all major markets falling sharply on Thursday, I though it would be a good idea to take a quick “fly-by” glance at the daily charts of the S&P 500, Gold, Crude Oil and then the US Dollar Index.
It’s often helpful to step ‘inside’ the price action, particularly if you are a swing trader and especially if you are an intraday trader to see the structure and formation of price and how it compares to momentum.
Let’s take a look at the 10min SPY chart and note the current levels to watch going foward.
I wanted to highlight a critical overhead resistance level – what I call the “Cradle Crossover” – that is occurring now in the S&P 500 Index. A resolution of this structure would certainly give us clues as to what to expect going forward.
I wanted to share an educational chart on how the Three Key Market Internals formed a predictable pattern that helped forecast the odds of a sharp rally ahead, which we’re seeing materialize today.
Let’s take a look not just at that, but the current chart of Market Internals and some key Fibonacci overhead resistance targets to watch.
For those of us who follow overseas markets, I wanted to share a quick reference to the overhead resistance levels and structure as seen on the Monthly Japanese/Tokyo Nikkei Index.