In December we highlighted an interesting pattern of eveningstar reversal formations on the S&P 500 daily chart. We noted that, in both October and November eveningstar patterns had formed on the chart. They had marked important lower highs An eveningstar is a bearish three-day reversal formation, often seen at market tops. It consists of a… Read More »
We have been watching the wide levels on the weekly index charts, levels which had been support early in the year. They reverted to resistance following the December drop. Last week the NASDAQ Composite closed above its resistance area, while the other major market indices were just below or testing those levels. The rebound in… Read More »
In December the major market indices dropped sharply and broke below areas of former support on their weekly charts. These zones had provided strong support in February and April last year, and later in November. As we know when a support level fails and price breaks down, the support level reverses roles and becomes resistance.… Read More »
The financials are one of the most beaten down sectors of the market. The Financial Select Sector SPDR Fund (XLF) is down 21% from its 2018 high and was down over 25% at its low last week. Last week’s low touched the 50% Fibonacci retracement level of the fund’s 2015 low and its 2018 high.… Read More »
The SPDR Gold Shares (GLD) have spent the last four years trading under resistance in the $130 area. This level has been retested multiple times and held firm. But it looks like another test is in the offing. The low on the GLD monthly chart was made in December 2015, a higher low was made… Read More »
The S&P 500 index was down nearly 13% for the year on December 24. We were officially in “bear market” territory with a 20% peak to trough decline in 2018. But the sharp low-volume rally over the last four trading days of the year recovered half the 2018 loss and lifted us out of bear… Read More »
Wednesday’s broad based rally formed “morningstar” patterns on a large number of daily charts. The morningstar is a three-day formation that consists of a large down-day candle, followed by a narrow opening and closing range “doji” candle, and completed by a large up-day candle. It is considered a reversal pattern and represents a transition in… Read More »
Allianz’ chief economic advisor Mohamed El-Erian on CNBC’s Squawk Box on Friday morning, said that he was stunned by all the recession talk. He issued this warning: “Bad market technicals can become bad economics.”
On 12/11, Jim Cramer featured RightView Trading’s take on the technical condition of the major market indices on the “Off the Charts” segment of Mad Money. It is always a pleasure to be a part of the show and we thank Jim for that opportunity. At the time, we noted that the major market index… Read More »
Total corporate debt is estimated to be around nine trillion dollars. There is increasing concern over how companies will manage this load as credit spreads widen. At some point in time, rising interest rates will slow economic activity and the credit cycle will turn. Corporate profits will decline and some companies will see their investment… Read More »