Today’s morning session gave us another excellent example of how TICK (internals) and Momentum divergences can precede intraday reversals… or at a minimum, fail to confirm new price highs on the session which is a warning sign that traders can sometimes miss. Let’s take a quick look at this example and the lesson it brings.
Instead of looking at the Euro Index, let’s take a look at the Euro – US Dollar FOREX Pair – EURUSD – and see the current ‘color chart’ along with two sets of momentum divergences and an Elliott Wave count. Sound complex? Let’s look at it step by step.
This morning, I wrote about the lengthy “Market Internal” non-confirmations or glaring negative divergences that are creeping in to undermine the current stock market rally.
Let’s step back in time to May 2008 – the peak of a counter-trend rally and the last time we saw such glaring non-confirmations with market internals and price… just before a major reversal.
Let’s take a look at the full S&P 500 rally from the March 2009 lows and take a special look at daily readings of Breadth and Comparative Volume to see that Internals surged higher and confirmed the initial rally but lately in an ‘about-face,’ have been failing to confirm the new 2009 price highs. Let’s take an objective look at price and underlying internals.
I wanted to share a portion of an article written by Robert Prechter of Elliott Wave.com in his recent “EW Theorist” newsletter where he discusses the possible historical link between the 1929 market crash and today’s eerily similar looking rally. For the full article, check out the page by analyst Nico Issac, “Black Monday: Ancient …
Last night, I took a look at the Bullish US Dollar ETF (symbol UUP) and noted its structure, positive divergences, and moving averages to watch. This morning, let’s take a look at two other related, though inversely correlated ETFs for the opposite perspective.
Let’s start with the Bearish US Dollar ETF (symbol UDN) to note a ‘mirror image’ structure and then take a look at the Euro Currency trust ETF (Symbol FXE) to show how the Euro trades inverse to the Dollar.
There’s been talk of the strengthening of the US Dollar Index (or in the FOREX pairs), but here’s something people who only watch the index might be missing – there’s an obvious volume surge in the UUP shares (Dollar Bullish ETF) that is worth a second look. Let’s see it.
Goldman Sachs (GS) – a leading and bellwether financial company – definitively cracked under its important 50 day exponential moving average support today, triggering a classic sell signal. Let’s see Goldman’s Daily and Weekly chart and see what areas to watch below for support.
I must say Adam Hewison of Market Club has been on a roll this week! Instead of creating a separate post for each new video (roughly one quality new video per day), I wanted to share the links for each video – CRB Index, S&P 500, and Gold – in this single post. 1. Let’s…
With Baidu.com’s (BIDU) stellar $55 (12%) loss overnight (which is partially being recouped in today’s trading), let’s take a quick look at the weekly chart to find that the ‘damage’ so far was contained to the rising 20 week EMA, and then take a look at a detailed recent Elliott Wave count on the recent move off the late 2008 lows.