Memorial Day
A Simple Technical Take On The S&P 500 Chart
A cup and handle base formed on the S&P 500 Index daily chart. Rim line resistance is situated in the 2660 area, which is also the 38% Fibonacci retracement level of this year’s range. The index closed right on the rim line on Monday and opened today about 3% higher. The Relative Strength Index, a… Read More »
Technical Look At The Johnson and Johnson Chart
Johnson and Johnson’s (JNJ) Chairman and CEO Alex Gorsky said Monday on CNBC’s “Squawk Box” that human testing of its experimental vaccine for the coronavirus will begin by September. If the vaccine is effective the company said it could be available for emergency use in early 2021. That seems a long way off but it… Read More »
Consolidation Is King – The Market Needs A Foundation To Support Higher Prices
The S&P 500 Index bounced up 20% from its Monday low to its Thursday closing high. It seemed primed for the bounce and in Tuesday’s article where we pointed out a bullish morningstar reversal pattern. But we also mentioned that a V-shaped recovery was not what many technicians wanted to see. Volatility is extreme and… Read More »
Important Bullish Reversal Pattern Forms On The Index Charts, but…
There was a powerful wave of buying that swept through the market on Tuesday. The major market indices were up over 10% in the session, closing on their highs. It was a relief to investors after a month of what seemed like indefatigable selling. In addition to the the positive price and money flow momentum… Read More »
We Pointed Out This Bearish Divergence On “Mad Money” One Month Ago – What Now?
Jim Cramer featured the technical work of RightView Trading on the “Off The Charts” segment of Mad Money exactly one month ago. Here is a recap of the piece from a follow-up article on TheStreet.com that day. It was another in a series of “Off the Charts” analyses that we did on the long term… Read More »
The S&P 500 Index – What The Chart is Saying Now
After the close on Monday I wrote about the bearish technical divergences that were present on the chart. The prior week RightView Trading was featured on the “Off the Charts” on Mad Money with Jim Cramer. In the segment we pointed out the bearish divergence between the Cap-Weighted S&P 500 Index, with a heavy concentration… Read More »
Mohamed El-Erian: Resist Buying The Dip.
The man who coined the phrase “New Normal,” Allianz chief economic advisor Mohamed El-Erian, was on CNBC’s “Squawk Box” this morning. He repeated his warning made earlier this month about the economic impact of the coronavirus. His specific instruction today: “I would continue to resist, as hard as it is, to simply buy the dip.”
The S&P 500 – A Break Below Current Support Projects Initial 7% and 10% Downside Targets
Monday’s market decline was brutal. The Dow Jones Industrial Average was down over 1,000 points. The S&P 500 Index opened below its 50 day moving average and below a long term uptrend line on the daily chart. The S&P did attempt a bit of a recovery in the Monday session around 3:00 o’clock in the… Read More »
The Technical Signs That Preceded Monday’s 1000 Point Drop In The Market
Normally market movement is related to a combination of causal fundamentals followed by a reaction that is technically triggered. The 1000 point drop in the Dow on Monday was the reverse. The movement was related to a technically tentative market condition that was triggered by the fundamental concerns over the coronavirus. The daily chart shows… Read More »