I wanted to show a mid-afternoon “Best Trade” idea in the market today, which highlighted an internal TICK divergence with a momentum divergence as price filled the morning gap into the resistance area of Friday’s close. Let’s see it:
Today’s intraday structure gave us a nice “Rounded Reversal” example that formed another “Super Divergence” like yesterday’s session gave us. That’s why it’s so important to study the day’s structure each day because history repeats – sometimes back to back! Let’s look at today’s SPY intraday structure for lessons from the day’s events.
I mentioned last night in a lesson/example on intraday Elliott Wave that a fractal 5-wave structure had completed. If we look up to the 15 (or 30) minute intraday charts, we see another ideal example of the expected Elliott pattern. Let’s see it as another example to try to learn this concept of how momentum lows and divergences fit into an Elliott pattern.
There’s interesting chatter in the “Dow Theory” community as to whether we’re experiencing a non-confirmation in the Industrials and Transports currently – namely, the Industrials are at a new high for 2009 and are above the 200 day SMA while the Transports are not. Let’s take a look at both.
Potash (POT) recently completed a Price Projection Target move out of an ideal symmetrical triangle pattern that I wanted to show you as an example. Let’s see it on the daily chart.
There were some interesting lessons to learn via the intraday action on May 13, 2009. Let’s see some of them – particularly three TICK divergences and a fractal Elliott Wave pattern on the trend day.
Apple Inc (AAPL) has been a relative strength leader off the March 6th market bottom. Let’s take a look at its currently daily structure to see where it’s come from and where it might be heading. First, observe the powerful $45 price move up (47% increase) off the March lows – actually Apple showed relative…
Using today’s price action so far as an example, let me walk you inside the price action for April 30, 2009 in the SPY to discover that massive TICK, Breadth, and Momentum divergences all formed, clueing you in that a price reversal was far more likely than price continuation. Let’s walk through the market internals…
Goldman Sachs (GS) is coming into Fibonacci resistance on a negative momentum divergence. Let’s look at this current development as well as learn a few lessons – such as a clear “Three Push” example – on its daily chart. (Click for larger image) First, let’s look at the “Three Push Reversal” pattern that formed on…
It’s rare when all of you indicators point in the same direction, but when it does, a powerful trade can open up. I wanted to show you such a trade that just completed in the QQQQ: Real quick, price formed a 5-wave Elliott Wave fractal into the intraday highs, but more importantly, notice it did…