I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Earlier this morning, I posted on USO in “US Oil Fund Threatens to Break Support.” Let’s step up to see the Crude Oil Index ($WTIC) in StockCharts (prior to today’s close – end of day data only) to see the current … broken … Andrews Pitchfork Grid on Crude Oil prices.
I wanted to highlight an interesting yet critical support zone for the US Oil Fund (USO) and – in turn – Crude Oil (similar chart). If broken, odds will shift to favor further downside, but until then, let’s look at a critical confluence price area to watch going forward.
File this under “In case you missed it” – gold prices fell $40 intraday following Friday’s better than expected “Jobs Report” while the S&P 500 rallied sharply… and then sold off. Let’s take a look at gold’s 60min and daily chart to step inside this recent action, and note the divergences that preceded it.
Here’s another very quick look at the intraday charts, showing three vicious bear traps on the most recent pushes to new 2009 highs. Stay on guard – the market is very volatile and both bulls and bears are struggling to find direction… both failing… and succeeding.
With the Jobs Report more than surprising the market this morning, let’s take a quick look at the current trendlines that will either contain this bullish surge… or break through to create a larger move to the upside.
A reader pointed out to me that there has been three days of strength in some of the major US Airline stocks including Delta Airlines (DAL) and Continental (CAL) and to a lesser degree in other airlines. I wanted to take a look at these stocks to highlight this strength and the overhead resistance levels that – if cleared – would be quite bullish indeed for airlines in general as we are in the midst of a holiday travel season.
If you take a look at the 30 min chart of the SPY, you find a market filled with landmines and gaps along with a clearly defined trading range in which the market trades currently.
Let’s take a look at that range, the upper and lower boundaries, and the many gaps that formed through November into present.
Google stock (GOOG) is completing a full “Mirror-Image Foldback” (a fancy term for a symmetrical decline and recovery) into a possible resistance level at $600. Let’s take a look at Google’s weekly chart to see these developments and pay close attention to what happens as price retests the $600 level soon.
In the aftermath of last week’s Dubai World market decline, let’s take a look at the EEM – the Emerging Markets ETF to see the recovery and current important level to watch going forward.
Friday’s intraday trading action in the SPY gave us a great opportunity to see an example of at least three non-correlated trading strategies/methods coming into ‘confluence’ to create a low-risk, high probability trade set-up. Let’ see it in action!