It’s common to ask the question when price breaks a key resistance level, “Is this a real breakout that will last, or is this just a short-squeeze situation that won’t?”
That’s the operative question now – let’s take a look at the price breakout in the S&P 500 and try to make a determination with the information we have so far.
Let’s take an afternoon look at the ‘popped stops’ rally of March 1st, which shows divergences in Breadth and TICK – both important non-confirmations going forward.
It’s already March 1st and the market is off to an early rally! With a new week and a new month upon us, let’s take a quick look at some of the key indicators/charts that the Disciplined Investor – Andrew Horowitz – is watching on March 1st. Today’s update is entitled, “An Apathetic Condition” (interesting…
While doing some weekend research, I came across an interesting development.
At first glance, I saw that the Consumer Staples Sector SPDR – XLP – was making new recovery highs (new 2010 highs). My first thought was that this was a very bearish development that could be underscoring risk-aversion in that money is flowing into ‘safer’ stocks according to the Sector Rotation Model.
My next thought was to compare that development with its sister sector, the Consumer Discretionary/Retail Sector – XLY – to see if we were seeing weakness there. To my surprise, I found that we were seeing new 2010 and recovery highs in the ‘risk seeking’ or offensive Retail Sector as well.
Following up from my previous webinar on trading intraday ‘dual’ divergences (TICK and Momentum), I wanted to show the most recent example in the SPY intraday with regards to the negative divergences that resolved in a downward swipe today, which serves as an excellent example of the concept.
Even if you don’t trade or look at the Japanese Yen Index charts, the Yen Index formed an interested “busted” (so far) head and shoulders pattern on its daily chart that is worth an educational look.
Beyond that, let’s look at the key levels to watch for an upside or downside break of current trendline boundaries.
I’ve been asking the question, almost rhetorically, “How many times will the market repeat the same pattern,” (see prior post for previous examples) and the answer is “at least one more time… today.”
What pattern is that? And how can knowing the pattern help your trading? Let’s take a look.
In an interesting development, the US Dollar Index (shown here in the @DX futures contract) has been riding a clearly defined trend channel higher, with a few bumps along the road.
Let’s take a quick look at the current structure and note the most important price levels to watch going forward – in the event of any sudden price breaks.
A few readers have asked me to post on the current state of the EURUSD FOREX pair, and indeed there’s something interesting going on here and it’s definitely worth a look.
Let’s see a long-term structure chart along with the key level to watch in the pair as we form positive divergences at the 61.8% Fibonacci Level – a very important inflection point for sure.
I discussed a bearish pattern forming in Google for today’s “Technician’s Edge” column at GreenFaucet.com. The full post is entitled “Google (GOOG) Forms Ominous Bearish Signals,” and I wanted to share a few charts showing these developments. First, let’s start with the Weekly Chart: The main idea is that the 20 week EMA rests at…