One thing stock market traders may have missed in the wake of the Google and Goldman Sachs sell-off Friday was that gold and crude oil prices also suffered similar declines as the stock market.
With that in mind, let’s take a quick updated look at the daily charts of GLD (Gold ETF) and USO (Crude Oil ETF) to see what levels are important for us to watch.
Before panicking at the sell-off Friday, take a moment to look at the simple price structure on the S&P 500 short-term charts. For now – and until proven otherwise with a break – we’re still above critical support, so it may be early for panic.
Just when it seemed like this market would continue its journey to the moon, we had a major one-day (at least) snap-back in price that erased the gains of the last week, plunging us in one day to an intraday low price not seen since last Thursday, April 8th.
In what can be described as the “music stopping” in a long round of musical chairs, the stock prices of Google (GOOG) and Goldman Sachs (GS) plunged Friday morning, shocking investors after both stocks had advanced in a seemingly endless rally.
Steve Spencer at SMB Capital recently shared both a personal story of how he and Mike Bellafiore adapted to change by uniting shared interests and experiences via the founding of SMB Capital, which serves as a good example of how to turn misfortune into opportunity. In a post entitled, “Finding a New Trading Home,” Steve…
For those of you who follow key market internals on an intraday basis, you almost certainly noticed that today’s break to new recovery highs in the S&P 500 was not confirmed (really in any way) by any of the three key market internals. That’s a warning signal but not yet a ‘reversal’ signal unless we see follow-through with lower prices.
Let’s take a quick look at the internals and intraday chart as we wind down into the close on April 15th.
For those who follow or trade Amazon stock (AMZN), you may have noticed a very interesting pattern recently – that of a nice “Rounded Reversal” or “Rounded Arc” pattern that has now taken us back to prior resistance on the verge of another potential breakout.
Let’s take a quick look at this pattern what what levels to watch going forward for the stock.
With the day half-over and the market surging to new recovery highs in “Popped Stops” breakout mode after breaking comfortably above 1,200, let’s take a quick look at the state of Market Internals.
Are they confirming the rally?
I often advocate taking at least a few moments to pull everything off your chart except price – doing so allows you to see the character or structure of a market without all the clutter.
This post is an update on my prior post “S&P 500 Trendlines Reveal Boundaries and Positive Feedback Loop” which still rings true today.
Since the February 2010 bottom, two trendlines have been the only thing that ‘mattered’ when setting up trading decisions – not volume or momentum divergences, not overbought oscillators, nor any other methodology.
The folks at EWI (Elliott Wave International) released a provoking new article today entitled: “Blaming Market Manipulation for Losses is a Huge Obstacle to Success.” The article encourages traders to take responsibility for losses instead of finding scape-goats to blame. Losses may have just been the result of a bad outcome from a high-probability trade……