Shares of Walt Disney (DIS) have been strongly correlated to the S&P 500 since the 2009 low. There have been periods of dislocation, of course, and the stock and the index are currently in one of those periods. Disney shares have been making lower highs above their 50 day moving average this month, while the… Read More »
The major indices posted gains on Friday, but the charts reveal price action that was less positive than the closing numbers might indicate. Intraday reversals formed large high wick or upper range candles on the DJIA and S&P 500 index charts, and the Russell 2000 and the NASDAQ Composite closed near their lows of the… Read More »
I know what you’re thinking, “Please no more closing posts, updating the latest doji sighting on the index charts.” Today, however, there was a very rare one and it needs to be noted. A tri-star pattern formed on the S&P 500 daily chart. This is simply three consecutive, narrow opening and closing range or doji… Read More »
The S&P 500 Index and the NASDAQ Composite had very narrow opening and closing ranges today, forming doji candles on their daily charts. These candles suggest at the least, that traders are conflicted about short-term market direction and they reflect indecision. The Russell 2000 formed a tweezer or two-day reversal pattern, a large white candle… Read More »
Call them “dojis” or “spinning tops,” the narrow opening and closing ranges on the daily candles of the major indices, reflect indecision. Traders are unsure about the effects of revisions in Federal Reserve policy going forward, and this perplexity is not a good thing as the markets attempt to make new highs.
This is a quick review of where this bounce has taken the major indices. The DJIA is back above its August low, which is also the 50% Fibonacci retracement level of its 2014 range, but still below the 38% retracement level of its September high and October low; the S&P 500 index retuned to a… Read More »
A very interesting series of candle closes occurred on the charts of the major U.S. indices on Friday. The DJIA closed above its open and in upper candle range, the S&P 500 index closed above its open in mid-to-upper candle range, the NASDAQ Composite closed below its open in mid-to-lower candle range, and the Russell… Read More »
The intraday reversal formed large hammer candles on the DJIA and the S&P 500 charts. A hammer is considered a bullish reversal candle, hence the term “hammering” out a bottom, but like all candle or price patterns, they require confirmation. If we get some follow-through in coming days, the August lows will be the first… Read More »
The DJIA and the S&P 500 index have retraced 50% of their 2014 range, and the NASDAQ Composite has retraced 62% of its range. I posted this chart last week in hopes that the retracement levels penetrated today would have held, and there would have been some attempt at a bounce. This was not the… Read More »
Fibonacci retracement levels measured off the range for the year suggest potential layers of support for the major stock indices. Several are being reinforced by their respective 200 day moving averages and previous important lows. As far as resistance is concerned, its all about the 50 day moving averages, but one step at a time.