I describe the week’s actions and discuss where we are in the market for the upcoming week.
The VIX (Volatility Index) inflected off 2008 lows and support just as the US Stock Market met resistance, which set up a nice confluence that could have clued you in to odds of lower prices in the broader indexes recently. First, let’s see the Weekly Chart to see when the last time we reached these…
Some traders imagined new life for the US Dollar Index, and while that may be the case long-term, in the short-term, the Index has created a false breakout only to roll back to the downside and could make new lows. Let’s look at the daily chart: While a positive momentum divergence did precede the breakout…
The market has been strong since its March 2008 lows, but let’s take a peek under the hood at the Market’s Internals to see if there’s underlying strength or weakness. First, the the recent NYSE Advance/Decline Line: The important fact to note about this chart is that the line made a new high for 2008…
Let’s look at the price positions of the US Dollar Index and the Dow Jones Index to gather clues about possible moves next week: First, the Dollar: The Dollar Index rallied (strengthened) last week, after forming a tight coil and has broken above its key 20 period moving average. Price is finding preliminary resistance at…
Let’s take a quick ‘fly-by’ of the major US Stock Market Indexes for clues about what may happen next week: Some observations about the daily chart of the S&P 500: Price is testing upside resistance via horizontal line. The 20 and 50 period moving averages completed a bullish cross (green arrow). There is semi-strong support…
In the previous post, I specifically mentioned the Technology sectors as being one of the worst performers year-to-date, and the Industrial sector as being one of the best. Let’s take a look at those in a little more detail to see if we can gather a few clues: The Technology Sector, supported by similar patterns…
Let’s take a quick look at what the sector analysis is saying. First, let’s look at year-to-day (76 days) returns for the nine major SPRD sectors according to StockCharts.com: The Materials (up 6.5%) and Energy (up 5.6%) sectors have outperformed all others, while the Health Care (down 10%) and Technology (down 10.5%). While the Sector…
Let’s take a quick peek at the US Dow Jones Index and what may be in store for next week: The market has broken beneath key support coming from the flattening of the 20 and 50 period moving average, as well as the bottom trendline of an ascending triangle pattern. The market is in an…
Citigroup (C) is showing initial strength on the daily chart and may be ready to try for a reversal. Price is struggling to break above the 50 period moving average, which has served in the past as key resistance. Price remains in a strongly confirmed downtrend, but a recent increase in momentum may be a…
Before we start the upcoming trading week, let’s look at the S&P 500 Index from a brief technical perspective. A few quick observations: There is a positive momentum divergence forming The 1,260 – 1,270 price zone has provided solid support The 1,400 zone has provided solid resistance Volume increased on the recent downswing and decreased…