What a difference two days makes! As of Monday, almost all eyes were focused on a potential breakout from an ascending triangle formation on the major US stock market indexes, and now that pattern is invalidated, and one of two new possibilities exist – one benign and one ominous. Let’s look. S&P 500 Daily Chart:…
On Monday, gold prices convincingly violated a key potential support zone, and now it appears that the path of least resistance is to the downside. Let’s look at the weekly chart: Price violated the rising 50 day moving average, which was an initial downside target that has now been achieved. Price has formed a lower…
In something that may have escaped your attention, the Russell 2000 Index is mere points from making a new price high for 2008 – which may be a little hard to believe until you actually see it… so let’s look! Russell 2000 Weekly: The chart I have was taken from data from Monday’s close, but…
While the Daily Dow Jones is short-term bullish, let’s step back and look at the larger structure for potential targets and zones of possible resistance. Dow Jones Weekly: We have a little leg-up in viewing Monday’s action on the chart, so the final candle is far from a complete weekly close, so keep that in…
Potash Corp (POT) is in the midst of a downside price plunge, which was in part forecast by the breaking of moving average support and a subsequent target of a downside test of the 200 day moving average. At current, Potash has tested and failed to hold the critical support line. What does this mean?…
Hat tip to Hale Stewart of the Bonddad Blog for his article published on the Huffington Post entitled “Yes, it is a Recession [and] No, it Won’t End Soon,” which discusses several points about the economy worth considering. I strongly recommend reading the full article (at either of its locations), but I did want to…
It’s time to look at the broader picture of the Dow Jones Index, and then look at its 30 stocks to see which ones are overextended both above and below its 20 day simple moving average. Dow Jones Daily: The Dow (and S&P and NASDAQ) has gently broken above three forms of resistance: The upper…
If you missed this on Friday, make yourself aware of it now – the US Dollar Index surged significantly on Friday, breaking above key resistance, and possibly altering inter-market dynamics for some time to come. Let’s see the daily chart: After building a lengthy and evident positive momentum reading on the bottom-panel indicator, price finally…
Let’s take a quick look at a very interesting pattern that occurred during Thursday’s intraday index trading session and also at some of the opportunities from price structure that set-up during the day. DIA – Dow Jones ETF (5-minute): First, the morning began with a large overnight gap of roughly 100 points, putting us in…
I’m adding a new feature to the research side of the blog, which asks the question, “Would it have been more profitable to trade exclusively intraday or to hold overnight exclusively or some mixture?” Essentially, the question asks ‘what might you be giving up if anything by not holding a trade overnight’? To run these…