I describe the week’s actions and discuss where we are in the market for the upcoming week.
An incredibly bearish omen is setting up currently in the monthly charts of the US Stock Market Indexes. Each index has now carved an intra-month breach of its rising 20 period (month) moving average, which has served as key support and key resistance many times prior. Until a close is registered beneath this average, meaning…
The NASDAQ index sits exactly at a key price support zone, the break of which will increase the odds for significant downside, but should the index support at this level, can an “all clear” signal be given? I’m sure you’ve seen prettier charts, but the fact remains that the NASDAQ sits at a key level…
Fewer patterns are more pure than the recent price rejection at upper resistance via the falling 20 period moving average in the US Dollar Index. It is an example of how to use two time frames for confirmation. First, let’s look at the structure of the daily chart with a few possible thoughts: First, we…
The expected “Santa Rally” has not gained much traction in the overall markets as anticipated. The stock market is winding down in volatility for the end of the year and is setting up for a potential larger breakout. Observe the ‘triangulation action’ in the market, as evidenced by the converging trendlines that form a semi-triangle….
2007 will partially be known as the “Year of the Commodity Boom” due to the fact that some major commodity prices, including crude oil, hit new all-time highs and provided savvy traders with numerous opportunities for profit. Let’s look at some of them in no particular order: Corn (continuous): Wheat (continuous): Gold (continuous): Crude Oil…
With inflation concerns picking up, and an economic slowdown virtually a certainty, the US stock market indexes are looking far worse (for the future) than they did at the start of 2007. Let’s look quickly at the momentum development on the Dow Jones: Of interest to this chart, note the following regarding the oscillator at…
With 2007 nearing its close, I thought it would be interesting to look at the #1 best performing, and the #30 worst performing stock in the Dow Jones Industrial Average so far: Can you guess what the #1 stock was? The result may surprise you. McDonalds (MCD), up from $42 to $62 this year (a…
The US Equity markets are in another precarious position, where price has reached a key inflection point, and a line in the sand has been drawn. I mentioned earlier that the Index (particularly the Dow Jones) should find support at the confluence of key moving averages, and they did, but they are re-testing that support…
Looking at the Sector Rotation model over the past 10 and 30 days, we see bearish longer term and mild-to bullish short-term sentiment as a ‘money flow’ indicator. Let’s first look at the 30 day segment of sector performance: We see fund flows into relatively defensive or bearish sectors during the period from late October…
Let’s take a look at the current “Swing Charts” of the major US Stock Market Indexes: First, the Dow Jones Daily: Price is nearing the Upper Keltner Channel The recent upswing is greater than prior upswings, but failed to create a new momentum high Price is above all key moving averages Price is in a…