We were neutral about the market going into this weekend. The G-20 outcome seemed, in our opinion, skewed to the risk rather than the reward side. As it has turned out, some compromise was reached and the futures market is implying a very strong open this morning. We will not be chasing this move. As… Read More »
Last evening we penned this article on the series of eveningstar patterns that have marked recent highs in the Dow Jones Industrial average. It speculated that a fourth in a series of bearish tops was forming on the Dow daily chart. It was posted early this morning. The market gapped lower at the open then… Read More »
A particular bearish pattern has defined the last three highs on the Dow Jones Industrial average, and another may be forming again on the daily chart. The early October high was a turning point for the market. It ended the intermediate term uptrend off the July low, and has been followed by nearly two months… Read More »
On Monday we posted an article entitled “This Is Where The Real Resistance Is On The S&P 500 Chart.” In a matter of days the S&P has pierced through lower levels of lesser resistance and moved up to test an area we outlined in the article as key resistance. The top end of this zone… Read More »
It has been a volatile couple of months for Amazon (AMZN) shares. Still the price swings have all occurred under a declining trend line. And while Amazon has seen a substantial bounce off its November low and Wednesday’s Powell rally was impressive, the downtrend is still in place. What would it take to change that?… Read More »
Here’s our analysis of the West Texas Intermediate Crude Oil Continuous Contract (WTIC) weekly chart. A large inverse head and shoulders base began forming in late 2015 and was completed in November 2016. The neckline was situated in the $51 area and that pattern resistance was broken at the end of 2016. The breakout failed… Read More »
The nearby levels of support on the daily S&P 500 chart are becoming fewer and farther between. The futures indicate today’s open will take out the November low. There is a bit of a support vacuum below that level until the 2640 October closing low. Below that level is the October intraday low at 2603… Read More »
The Russell 2000 chart is the first of the major index charts to experience a death cross. This is when the 50 day moving average crosses below the 200 day moving average. It can signal a major shift in the momentum of a stock from uptrend to downtrend. The NASDAQ Composite Index is close to… Read More »
Back in April this year, we wrote an article entitled “The Technical Case for a Bottom in the US Dollar.” The premise of the piece was that the US Dollar was been putting in a base and had recently broken above a long term resistance level. The bottom line was, “It takes a while to… Read More »
The S&P 500 Index was unable to penetrate the 2820 level last week, but was able to hold support at its 200 day moving average. On Friday, it managed to form a hammer candle on weak overall volume. In early Monday morning trading the index has moved below its 200 day moving average. It is… Read More »