I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
I wanted to share a special chart I created for this week’s Weekly Intermarket Report which takes a moving average of two different measures of Market Internals which shows a specific non-confirmation of recent highs. Let’s take a look at these averages on the daily chart of the S&P 500 spanning back to the March lows.
Along with the quick global market decline that occurred while the US was celebrating the Thanksgiving holiday, gold fell $60 in a span of about four hours, highlighting the potential risk of an overbought, overextended market. As of Friday morning, gold has regained most of those gains, but the sudden volatility was not a fun experience for most participants. Let’s see it on the overnight charts.
If you didn’t check the US futures on Thanksgiving (what good trader wouldn’t do that?!), then you missed some sharp downside action, spurred by global shockwaves from Dubai’s proposal to postpone debt payments. Global Markets were open while the US Market was closed, and many of these overseas markets fell sharply on the US’s Thanksgiving holiday.
I wanted to show the morning “External” or “Lengthy” (multi-swing) negative Momentum and TICK divergence that preceded a mid-day retracement which served as an excellent low risk, high probability short-sale opportunity. Let’s see it on the 1-min SPY chart:
A reader asked me to create a chart of the “Gann Fan” structure, and I wanted to show that chart as one of my “Chart Art” series of posts. Let’s take a look at a 10 point Gann Fan originating from the 2007 high and also the 2009 low in the Dow Jones Index.
There’s an interesting convergence of two ‘advanced’ technical trading methods that show potential overhead resistance – or upcoming technical breakthrough – at the 10,500 on the Dow Jones Index – the upper trendline from an Andrew’s Pitchfork and the 100% Fibonacci Price Projection. Let’s see them both.
I wanted to put up a quick mid-day update on the current market as of 1:45pm EST, showing a tight consolidation/triangle pattern that’s worth watching for a breakout play.
Instead of looking at absolute breadth (advancers minus decliners) data, let’s smooth out that data with moving averages and take a look at the ‘bigger picture’ of recent breadth developments.
I wanted to point out a clean idiosyncrasy in the current S&P 500 chart of the last three months – almost with awe.
This cycle has held up so far, and it’s allowed me to call successful predictions recently upon recognizing it earlier.
If the cycle repeats, then you have a clear roadmap to the near future. Let’s see it and watch as to whether or not the cycle repeats into the end of November.
With Dell’s earnings disappointment this morning, let’s pull the perspective back to the weekly timeframe to put this drop into perspective, and then look at a confluence resistance zone overhead… as well as a confluence support zone underneath. Which will hold?