Traders are still adjusting to the significant sell-offs this week in the commodity markets, including Crude Oil which broke sharply today. Let’s see the daily chart pattern leading to the sell-off and see a great reference example of the “Three Push” reversal pattern with “Triple Swing” Negative Divergences. Crude Oil Futures (@CL) Daily: First of…
No doubt you’ve seen the sharp decline (to be fair, after a stellar rally) in Silver (SLV), but right now, traders are anxiously watching the critical defining level at $41 in Silver Futures and $40 in SLV. Why? Let’s take a look, starting with Silver Futures (@SI): Keeping the chart as simple as possible, the…
We’ve seen huge volaitlity this week in silver, but what about the broader basket of commodities as seen in the CRB Commodity Index? There’s actually a critical overhead resistance level to watch, and the daily chart is showing caution signals at that level. Let’s start with the weekly Fibonacci Level and go from there: The…
What are market internals – namely Breadth and VOLD – revealing about the current state of the market rally? Let’s take a look, starting with the hourly chart: As I highlighted in last night’s member report, the current rally structure and present divergence is similar in nature to that of the end-of-March rally into the…
I’m excited to announce that I will be presenting a free, live Webinar sponsored by TradeStation as part of their “Live on the Web” educational series that is open to all traders, and I wanted to invite you to attend. The webinar is entitled: “Trade Execution: Aggressive vs Conservative Tactics and the Risk-Reward Relationship” Here’s…
All measures of volatility have increased significantly over the last few months in silver, which have both thrilled traders and caused them to adjust their trading tactics as a result. Let’s zero-in on the recent changes in the Average True Range – ATR – and find out what that means for traders adjusting to the…
What does the concept of angular momentum say about the current strong rallies on the daily chart of the S&P 500? Let’s take a look at both the angle of momentum and price distance traveled since the 2010 bottom: Click for full-size post. What we have above is a daily chart of the S&P 500…
If you’re focusing all of your attention on either the S&P 500 or the Dow Jones Index, there’s a major headline you might be missing: The Russell 2000 Broke to New Lifetime Highs while the NASDAQ Index Broke to New Recovery Highs. The Russell 2000 is comprised mostly of Small-Cap Companies while the NASDAQ is…
As chartists, we have a tendency to over-complicate the simple price chart with a plethora of indicators and overlays. We’re all guilty of this, and the solution is to take a brief moment to look at a pure price chart of a stock or index (or ETF). When you do that, you tend to see…
If you’re a close follower of intermarket relationships, you were likely surprised by this morning’s strange intermarket behavior. Let’s take a look at this morning’s “Inter-market Shake-up” and try to figure out where to go from there: In general, current Inter-market Relationships are based generally in the idea that Stocks and Commodities move together, and…