This afternoon we tweeted out that: The bulls need to see strength into the close. Don’t want to finish the week with “gravestone” doji candles on the index charts. The bulls were disappointed. Gravestone dojis formed on the S&P 500 Index, NASDAQ Composite, and Dow Jones Industrial Average weekly charts. A gravestone doji is a… Read More »
The decline in the value of the US Dollar as represented by the PowerShares DB US Dollar Bullish Fund (UUP), has taken shares back down to the 62% Fibonacci retracement level of the 2014 low and the 2015 high range. The fund has made three long wick candle lows just below this level and held… Read More »
Confirmed Caterpillar (CAT) breakout would be positive for the broader market. Interesting to see how the Netflix (NFLX) report affects Disney (DIS) shares. Intel (INTC) poised for new highs.
Moving averages often supply technical support and resistance. They have been doing just that on the charts of the broader market moving averages. The S&P 500 Index, the Dow Jones Industrial Average, and the NASDAQ Composite Index bounced off their lows this month, located at or just above their respective 200 day moving averages. Now… Read More »
There are a number of interesting technical developments on the McDonald’s (MCD) daily chart. A head and shoulders bullish reversal pattern has been under construction for the last two months. Neckline resistance is situated in the $162 area. This is very bullish potential basing action. A break above the neckline projects a measured upside move… Read More »
Federal Reserve Chair Janet Yellen said yesterday that she is ‘very uncertain’ about the path of inflation: “My colleagues and I are very uncertain that it [weak inflation] is transitory.” Their inability to stimulate inflation numbers is obviously problematic for the Federal Reserve. While the trajectory of the “dot plot” has not been a concern… Read More »
The iShares MSCI Emerging Markets ETF (EEM) is up over 30% this year. It has been a straightforward run higher above a rising 50 day moving average. That average is being tested again, along with horizontal support in the $45.50 area, and this time the test may be more severe. The MacD momentum oscillator has… Read More »
5 ways to diversify away from tech from CNBC. > The following is a synopsis of Tuesday’s “Off the Charts” segment on Mad Money, by Tom Bemis of TheStreet.com: With the market’s remarkable run over the past year, Jim Cramer told his Mad Money viewers Tuesday, it’s time to start asking if any of the… Read More »
A good way to monitor the intermediate term direction of long term interest rates has been to follow trend line breaks on the weekly chart of the iShares 20+ Year Treasury Bond ETF (TLT). It has been a simple technical technique to monitor a complex fundamental dynamic. Simple is good.