Monthly Archives: December 2016

S&P Index Retests and Runs

The S&P 500 index broke through 2190 resistance and then returned to successfully retest that level. Now it looks like after that brief pause it is ready to resume the uptrend that began early last month. The relative strength index remains above its centerline and the MacD never completed what looked like a potential bearish crossover. This market continues to be bought as evidenced by volume and the reading on the Chaikin money flow index.
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The Pandora Trade Plays Out

I highlighted a trading set-up on the Pandora (P) chart last week and recommended it as a buy at its then current level. The stock broke out of the cup and handle formation it had been basing in on its daily chart and up to a long term downtrend line on its weekly chart. The charts can’t predict take over rumors but consolidation patterns and defined levels of support and resistance develop sometimes, for reasons that do not show up in the most diligent fundamental analysis.

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