The US Equity markets are in another precarious position, where price has reached a key inflection point, and a line in the sand has been drawn. I mentioned earlier that the Index (particularly the Dow Jones) should find support at the confluence of key moving averages, and they did, but they are re-testing that support…
The following technical price pattern is extremely rare, but is worth ‘filing away for further research’ when it appears. It has a variety of names, including ‘saucer bottom,’ “U-Turn,” etc but the pattern is defined by a slow and steady decline in price until an equilibrium (base) level is reached, and then demand picks up…
I was a bit surprised that there wasn’t a more negative reaction in the US Dollar Index as a result of the Federal Reserve’s decision to cut interest rates by .25 bps. Typically, with lower interest rates, countries can expect their monetary indexes to be lower as a result of lower demand from foreign nations…
Being as that it’s Wednesday, let’s take a mid-week look at the current (fractured) state of the US Equity Market: Dow Jones Daily: Price did indeed find support at the confluence of the key moving averages, as I indicated earlier that it might. The move by the Fed apparently was not enough for the ‘cutters’…
Goldman Sachs today breached a triangle consolidation pattern to the downside, which has potential ominous implications for the broader market. Not only did price break beneath a triangle or coil formation, but price violated the significant “200 day moving average” which often is viewed by those with little technical analysis knowledge as the “line in…
I must say I was quite surprised by the ferociousness of the sell-off following the announcement from the Federal Reserve to cut rates .25 basis points. Typically, the market rallies in three pulses on those days but it appears the market discounted the expectation for a .50 point cut and was slammed instantly when expectations…
Before the Federal Reserve announces their decision, let’s take a very quick look at the current technical picture of the Dow Jones Industrial Average: Price is just under 400 points away from all-time highs. Price made a new momentum high (annotated NMH in the bottom oscillator) There is a convergence of support from all three…
The staff at Minyanville posted a thought provoking article entitled “Never Bet Against the House,” in which the author discusses some of the consequences and unintended effects of the increasing willingness by the government to “bail out” risk-seeking investors. In the opinion piece, Malcolm states: “Not only have risky investments been deliberately supported by government…
Looking at the Sector Rotation model over the past 10 and 30 days, we see bearish longer term and mild-to bullish short-term sentiment as a ‘money flow’ indicator. Let’s first look at the 30 day segment of sector performance: We see fund flows into relatively defensive or bearish sectors during the period from late October…
Let’s take a look at the current “Swing Charts” of the major US Stock Market Indexes: First, the Dow Jones Daily: Price is nearing the Upper Keltner Channel The recent upswing is greater than prior upswings, but failed to create a new momentum high Price is above all key moving averages Price is in a…