I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Are the Indexes at Support or Resistance? Today’s action would lend to the “Resistance” camp, but let’s take a closer look. Let’s start with the daily chart of the Dow Jones Index: With this chart, I have Resistance plotted via two areas: 1. The declining 200 day moving average 2. The horizontal trendline via prior…
Wow! What an interesting day it was for active traders. Yet another gap was filled and a sort of unexpected trend day emerged. Let’s look! Dow Jones ETF (DIA) 5-minutes Today opened with a sharp intraday gap down, which spent the first 10 minutes continuing downward. I prefer to wait for 3 bars (15 minutes)…
Microsoft officially withdrew its offer to acquire Yahoo, after Yahoo continued to hold out for a higher offer. The fall-out from this decision has already begun. AP Business writer Michael Liedtke reported Yahoo (YHOO) stock plunged 15% this morning, yet it is recovering some of its gains. “The sell-off wiped out nearly half the gain…
Apple Inc (AAPL) continued its winning streak into May after rising from $120 in March to $180 in May. It’s rare when we see a stock carve out the pattern Apple has, and so we need to look at this pattern to learn from it now. After plunging almost 50% in early 2008, price built…
Google Inc (GOOG) has been on a powerful move up, surging from $440 to $600 in less than a month. Following the upside $80 gap recently, the stock has impressed investors by adding another $80 points since the gap. But let’s look at the current action to see if this is sustainable. The price action…
In a twisting reversal of fate, the US Dollar Index is coming off new lows after building a potential base while gold prices are coming off new highs after a climax top and potential top formation. The intermarket relationships are in full force. Let’s look! Notice the ‘mirror image’ occurring in this post. That’s because…
Perhaps unexpectedly, the market gave us a powerful trend day up today. Let’s look at it and see where it leaves us in the broader picture: I’m showing the S&P 500 ETF (SPY) here for a proxy of the intraday action. Markets usually start a trend day by gapping, but this trend day snook up…
As I mentioned previously, the DJ Transportation Average is outperforming the Dow Jones Industrial Average, which generally is bullish for the overall market. Let’s peek inside the average to see which components of the Transports are doing the best. Let’s break it down into the Air Freight and Railroads, and their percentage performance since the…
How did you do on today’s Fed day? Days like this can remind us why volatile conditions can either be very rewarding or very draining for your account. Let’s see what happened and where the dust settled: On the intraday chart of the DIA, the Fed announcement (they cut .25 to 2.00%, as expected) came…
IBM has been roaring its way to new highs recently to levels not seen since 2000. Let’s see the chart of this impressive stock, which has made new highs as the stock market indexes fell in 2008. In fact, its lowest point this year was early January! Price broke above what can be considered a…