Last month was the worst June since the Depression – the Dow fell 10% in one month alone. Let’s look at the structure of the monthly index charts to see what their story tells us about the possible future. Dow Jones: The key feature of this chart is that price has closed beneath the rising…
This looks bad for the bulls. The Dow Jones Index broke its 2008 closing low today, and has broken its 2008 lows made in January. The overall trend is down, and momentum appears to be accelerating. The roughly 14% rally off the March lows has now been confirmed as a “Bear Market Rally,” in which…
Interestingly enough, the S&P 500 Index formed two doji candlesticks over the last two sessions, revealing a market experiencing indecision, which should give way to a larger trend move today or soon, so be expecting some sort of range expansion day. Beyond the two doji ‘indecision’ candles, we have a negative momentum divergence, and a…
Today marked a day of relative indecision for the US Stock Market. The Dow & S&P are trapped just beneath their 200 day moving average, and formed a strange doji pattern at this level, while the VIX reached new lows for the year. Let’s look at these developments: S&P 500: The NASDAQ actually closed higher…
There’s an interesting confluence of support coming in on the Dow Jones and S&P 500 Averages. Let’s look: S&P 500: On both charts, three proposed trendlines have all come together to a point, which sits just under the current index prices. It’s interesting to have such a confluence. Also, the key 20 and 50 period…
Intermarket analysis is a fascinating branch of market research, and I wanted to show you the performance of gold and the US Stock Market. There’s been an inverse relationship, such that when gold rises, the market is generally falling and vice versa. Gold is traditionally seen as a hedge against inflation, and inflation typically is…
I’m not sure how much you follow intermarket correlations, but there’s one relationship I’d like to highlight to you. The S&P 500 Index has been extremely correlated with the 10 Year Treasury Note Yield ($TNX), and continues to be so today. Generally (as demonstrated over the last 100 years, but not over the last 10…