After yesterday’s Fed Day surprise breakout, the market is taking a break and consolidating after yet another stellar upside rally. Let’s highlight the structure and pay close attention to the key levels at the moment: The Fed-fueled rally resulted in a straight-up impulse toward 1,960 and the market has retraced gently down from this level….
While yesterday’s session developed a clear Range Day, today’s session is balancing on the edge of “Range Day” and Trend Day. Let’s pay close attention to the key levels and the bullish message from Breadth so far: Note the yellow highlight in the context of the rising “Bear Flag” or rising parallel trendline channel. It’s…
Traders are often drawn to reversal patterns, and Lululemon (LULU) gives us a textbook lesson in how to recognize and then trade reversal patterns as they develop. Let’s take a look at this large Distribution Top pattern and learn the lessons we can apply to similar situations in the future. Large scale price moves (the…
We’re seeing another Range Day develop so far in the market. Let’s update our intraday trading levels, scan breadth, and then pinpoint potential trend day trading stocks. I’m highlighting the recent TICK (internals) and Momentum Divergences that preceded reversals of the intraday price trend. The key to focus on now will be the dual negative…
As traders, we’re constantly looking for changes in the trading environment especially when things that are less common or rare become more common. This is the situation we’ve been seeing with respect to the persistent rally in the market and how we study (and adapt to) what has changed. Let’s take a quick look at…
Apple shares (AAPL) continued their breakout and bull trend impulse after the late-April gap breakout and May “bull flag” retracement. Let’s chart the current course for price, highlight the key support target, and update the trading strategies developing at the moment for Apple shares. We’ll start with the broader Weekly Chart perspective: For a bit…
Although it should be happening, it’s still surprising to see the market actually decline after the non-stop rally of the last week. We’re seeing a little ‘normalcy’ return to the market with yesterday’s and today’s sell days (Trend Days to the downside) so let’s update our levels, view Sector Breadth, and of course pinpoint the…
We’re finally seeing some downside action! I was beginning to think that the market could only go higher but today returns us to a bit of normalcy. As I mentioned in yesterday’s mid-day update, any breakdown of the “Magnet” area near 1,947 would trigger a short-sell bias and we’re seeing not just the initial breakdown…
I wanted to take a quick look at the current strong rally and objectively compare the degree the market is overextended now and how that compares with the past (particularly the 1999 rally). Let’s take a look at two S&P 500 Charts and plot the ‘overbought’ distance from trending moving averages. We’ll start with the…
Today’s session gave us something a little different than the usual “straight up” price action of the last week. The session has developed a Range Day at a clear support reference boundary. Let’s note the intraday action, sector breadth, and of course our trending stock candidates for the day: In yesterday’s update I highlighted the…