I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
I first mentioned the possibility that the Dow Jones index was forming a “Broadening Formation” on July 15th and that pattern now appears to be the dominant structure with a price target that has almost completed. Please take a look at the original post and then let’s see the updated structure as of today’s powerful move up.
With this morning’s powerful break to new 2009 highs above price resistance, let’s look at the comparative price structures in the Dow Jones, NASDAQ, and S&P 500 Indexes year to date (as of mid-day July 23).
Structurally, after the recent rally from the 875 lows, the S&P 500 is challenging possible resistance at the 955 level which comes from both the January and June 2009 highs. We’re also picking up an internal negative momentum divergence along with a TICK (high) divergence at these levels which should call our attention. Let’s look at the structure.
On Monday evening, I highlighted a reader’s question on Whirlpool (WHR) in the post “Doji Sell Example in Whirlpool.” The question was “I got short off a doji but price kept rising – what happened?” Please see the prior post for the answer and my analysis.
Today’s intraday structure gave us a nice “Rounded Reversal” example that formed another “Super Divergence” like yesterday’s session gave us. That’s why it’s so important to study the day’s structure each day because history repeats – sometimes back to back! Let’s look at today’s SPY intraday structure for lessons from the day’s events.
A reader asked me a very interesting question this evening that I wanted to discuss with you all (with permission).
The question was in regards to a perceived sell signal in Whirlpool Corp (WHP) due to a doji candle after a large run-up. The question was “Why did the doji fail?” Let’s take a look:
Today was a great example to highlight the “Divergences” principle about how the can call key turning points intraday which provide excellent low-risk, high-probability opportunities. Let’s see some of these as they unfolded on July 20th.
Speaking of Dan Gramza, he wrote an educational article for the INO.com/Market Club Blog page that I wanted to share with you. Entitled “Selling Rallies… Monthly Market Studies,” you can read the entire blog post or for more information, watch a free presentation at INO Television (Video Network) as he discusses this topic in more…
The current S&P 500 60-minute structure (and SPY) give us valuable lessons in two ascending triangle breaks and multi-swing divergences. Let’s see what we can learn from this chart.
With Google (GOOG) announcing earnings that ‘disappointed’ Thursday night and Intel’s (INTC) earnings earlier in the week surprised, let’s take a quick look as of July 17th at these two market moving stocks.