I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Wow, what a day Friday gave us in the markets. Let’s look inside the price action to see what potentially profitable trade set-ups occurred in the intraday structure of the major stock market indexes. DIA Dow Jones 5-minute chart: Price began the day with an opening gap down, given the bearish ‘trend day’ from Thursday,…
Technicians should not be surprised with the recent downward price ejection out of the August consolidation pattern, known as a ‘rising wedge.’ Not only did the pattern follow classic definitions and expectations, we were treated with a prior example of the pattern just a few short months ago. Let’s look at the Dow Jones index…
Today’s 3% index rout reaffirmed the predominant and primary downtrend on the major US Equity Indexes, and also confirmed the breakdown of consolidation from a bearish rising wedge as the dominant technical pattern. Let’s look at the S&P 500 weekly chart to see the structure. S&P 500 Weekly: Price peaked in October, 2007 and a…
A reader asked me yesterday to look at a potential ascending triangle on the 3-year chart of copper and indeed that is the dominant structure of Copper prices and it’s definitely worth a second look. Let’s take a look at the compressed weekly chart of Copper prices (Symbol $COPPER in StockCharts.com): Ascending triangles are consolidation…
Financial stocks have been showing relative strength as of late during the recent market rally. I wanted to call attention to Prudential Financial Securities (PRU) to show a classic example of a Bull Flag measured move example worth nothing. Prudential Financial (PRU) Daily Chart: Price formed a positive momentum divergence on the July 15th lows…
Dell Inc (DELL) missed earnings last week and investors punished the stock by sending shares lower, breaking the daily uptrend and numerous levels of support. Let’s take a quick look at the charts to see what we can learn from these developments. Dell Daily: Prior to the earnings announcement plunge, price had completed a “Three…
Wow! Today’s price action was fascinating from a number of angles. The US Equity Indexes surged higher at the open, only to give back all gains and more. Oil, Gold and other commodities plunged sharply today, only to recover slightly by the close. Bonds rose and yields fell. Let’s take a quick chart glance at…
I wanted to highlight a quick, intraday example of a classic (or ideal) gap fade play that occurred on Goldman Sachs (GS) this morning. As a bonus, I’ll show the S&P 500 (SPY) chart intraday and the interesting reaction move that occurred today. Goldman Sachs (GS) Intraday: The morning (and week) began with a large…
With August now behind us, let’s look at what happened during that month in terms of the S&P 500 Index. Hint: A lot of up and down that left us relatively unchanged. Let’s look at the Daily Chart of the S&P 500 Index: It looked initially that we broke out solidly above moving average support…
Who would have thought it – Freddie Mac (FRE), which has been battered by almost endless selling, has actually doubled in value since the end of last week. Let’s take a closer look at this remarkable accomplishment that may have shocked a lot of market participants. Let’s look at a logarithmic scale of Freddie Mac’s…