I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
There’s interesting slightly conflicting technical signals on the DIA – the Dow Jones ETF daily chart. We’re seeing bearish overhead resistance confirmed by a bearish non-confirmation in volume… which is developing underneath a positive momentum divergence. Let’s see if we can sort this out. DIA Daily chart: I separated the volume bars to highlight the…
A friend recently asked me what I thought of eBay and Amazon simply because he figured – as many people do – that because online shopping as a trend is growing, then the stocks of these two particular companies must be surging. Let’s view the weekly charts of EBAY and AMZN to see if this…
Is a Rounded Reversal chart pattern in store for Research in Motion (RIMM)? The chart appears to be setting up that way – let’s see this development and take a closer look. RIMM Daily: It would appear from the chart that RIMM is indeed in the middle section of a possible “Rounded Reversal” or saucer-style…
There is a clear ascending triangle consolidation pattern developing on the major US Equity Indexes, and it appears we are reaching the Apex, or break-out point sooner rather than later. Let’s take a look at the S&P 500 Index and see this development. S&P 500 60min Chart: The S&P 500 is showing significant resistance about…
Today’s intraday price action in the DIA (Dow Jones ETF) was particularly horrible for the bulls, but it provided us a few excellent examples of clear bear flag patterns as well as an opportunity to view a near perfect trend day down. Let’s look. DIA 5-min chart: The day began with an opening gap… to…
Monday offered us a variety of interesting trading opportunities, many of us were instructional moments. Let’s step inside the 5-minute chart of the SPY – the S&P 500 ETF – spot some of these opportunities and locate some of the ‘idealized trade’ locations. SPY 5-min: To those of you who are regular readers, you know…
Warning – this post is not for the faint trading heart! A few readers have asked alternate methods to trade crude oil price moves and I’ve generally suggested the USO fund and a few others, but if you have some experience under your belt and want to take the most advantage of your directional bias,…
As the US Dollar has been weakening recently, foreign currencies have been strengthening, as have commodity prices. Let’s focus on the Euro Index to see what insights we can gain from the daily and weekly chart views. Euro Weekly: Price has clearly broken the strong uptrend which has persisted since 2002, roughly in line with…
From the looks of it, the US Dollar Index is breaking down while Crude Oil and other commodities appear to be building bases. Let’s take a quick comparison of the US Dollar Index and Crude Oil prices to see these developments in price structure. US Dollar Index: The Dollar formed a wedge pattern in mid-November…
Let’s step inside today’s trading action to see what points represented ‘idealized trades’ and gather as much information we can from the price structure that developed on this reversal day. DIA 5-min: The day started with an overnight gap to the downsie of roughly $1.00 (or 100 Dow Points) which is just in the gray…