I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
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Something interesting might be happening in the SPY chart, particularly with regard to the three most recent swing-ups in price – they have all been exactly equal in price moves (so far).
Let’s look at these three symmetrical swings – called “Measured Moves,” – and note the current level and how an exceeding of this level could hint at a shift in market “Character.”
With today’s price action breaking a characteristic behavior of the prior four short-term swing highs in the S&P 500, let’s take a look at those four prior peaks and what the same and what’s different about the current ‘peak.’
With price resembling a “Measured Move” pattern – a type of loosely defined flag pattern – let’s take a look at the full price projection target off the March lows for both the S&P 500 and the Dow Jones Index… which are now mere points away from a full move.
Let’s take a quick flight around the globe to view the weekly charts from the peaks in 2007 to the present recoveries in the broad stock market indexes of India, Brazil, and China to see how far an index fell and how much it has recently recovered.
Platinum Prices? What does that have to do with stocks? For one, the recent price pattern in Platinum resembles the recent ‘run-ups’ in stock prices.
Let’s take a quick look at the daily chart of platinum futures (index) to note the negative divergences setting in under the recent 2009 price highs and levels to watch to confirm a turn… or trend continuation and over-ruling of these pesky divergences.
This week has confirmed a bullish breakout in Wal-mart (WMT) stock prices from a 1-year weekly triangle formation starting in September, 2008. Let’s take a look at this bullish price break on the weekly chart.
Looking inside the most recent short-term moves in the broader market, we see a stellar signal from reading volume alongside with price.
Using classic volume interpretation methods, we can only come to one conclusion – volume insights are sending a bearish non-confirmation signal as the market grasps at recent highs, and either volume is going to have to pick-up (increase) to keep this rally going… or else price is going to have to fall via the signals from the “Voices of Volume.”
Since my last post on Silver Prices on October 5th, Silver prices have achieved the $18.00 per ounce price target and have hovered underneath that resistance level since then. Let’s take a quick look at silver prices and make a note as to how silver is failing to match the recent highs in gold.
Well, folks, the bulls have done it again – it looks like buyers have sprung an amazing fifth Bear Trap in the last few months that – if recent history repeats – will lead to another new high in the S&P 500.
Let’s take a look at the prior four traps that led to new highs: