We’ve had a steady rally all last week in the major US Equity Indexes, but let’s focus on the technical position of the S&P 500 and view both the daily and weekly charts and note possible projections and confluences. S&P 500 Daily: Price is clearly in a daily downtrend with a distinct series of lower…
Whether or not you did well trading intraday today (Tuesday), you have to admit that it was a rather intensely difficult day. Let’s see if we can discern order from the day’s seeming chaos and view the DIA (Dow Jones) 5-minute chart for insight. DIA (Dow Jones ETF) 5-min chart: Just like Monday, Tuesday’s action…
I know that today’s trading was frustrating for many reasons, but by the end of the day, we’d developed a successful gap-fade trade, a couple of bear flags, and a couple of positive momentum divergences – all of which are worth reviewing for educational purproses to build pattern recognition skills for the future. DIA 5-min…
It sure would be nice to have a continuation move one way or the other, instead of this constant big up, big down choppy environment we’re experiencing – these conditions can’t last forever so hold tight while we’re in them. Let’s look at the daily Dow Jones and today’s intraday chart (complete with gap fade)…
Not too long ago, a reader asked me to take a look and discuss the Steel Index for any insights. Presented below is the current daily and weekly structure of the Dow Jones Steel Index. One could look at X (US Steel) for a stock that is very similar to this broader index. DJUSST Weekly:…
Those following gold may take note today of a fresh new low formed for 2008 in Gold and the GLD ETF. Such a development may have been unimaginable earlier in March or July but such a move has occurred. Let’s take a quick look: GLD (Gold Trust tracking ETF): I’ve drawn this chart starting in…
Let’s take a moment to look at a fund you may not have been aware of, but that has formed two nice daily divergences which have since resolved that can serve as an educational example. The fund is DUG, the UltraShort (2 times leverage) Oil and Gas ProShares fund (which moves inverse to Dow Jones…
Valmont Industries (VMI) has been a steadily rising stock until recently, when bad news destroyed the tranquility of the recent rise. Let’s look at the charts for some clues and educational lessons. First, the stock broke above its downtrending moving averages in late March (double arrows), signaling strength in the stock. The breakout from consolidation…
If you’re following the intraday charts, momentum seems to be diverging to the upside as selling pressure is waning and buying pressure seems to be picking up, as the shift from supply to demand is comfortably shifting. Let’s look at the 30-minute chart of the DIA: Although it’s clearly a short-term shift, we see at…
In my trading, I utilize moving averages to determine trend, support/resistance, and price structure. The example today from the FOREX Australian Dollar / US Dollar cross (AUD/USD) showed an excellent example not only of how price can respect its key moving averages, but of momentum divergences as well: This is a 5-minute chart of the…