The previous post looked at the possible formation of a bear flag on the NASDAQ Composite daily chart. It implied a decline that retraced 50% of the previous March/September rally range. Another bearish reversal formation is under construction and near completion on the Dow Jones Industrial Average chart. A classic head and shoulders pattern has… Read More »
Last week the NASDAQ Composite broke the long term trend line that has defined the six month March/September rally. Since then it has been trading in a narrow range below that uptrend line and around its 50 day moving average. The price action since the NAZ made its recent high and the consolidation after the… Read More »
There is always an event that we look back and say, “Yes, that marked the top.” The much celebrated Snowflake initial public offering may be such an event. It may not be a long term top but the charts suggest we could see a significant pullback. Take a look at the seven month charts of… Read More »
The financial sector has chronically under-performed the broader market over an extended period of time. That dynamic may be in the early stages of a transformation. Last week the S&P 500 Index returned to its high of the year. This week it has made incrementally new all-time highs. By contrast the financial sector, as represented… Read More »
The Dow Jones Industrial Average ($DJIA) dropped below its 200 day moving average in early June. It’s been trading just below the horizontally trending 200 day average and more recently above a rising 50 day average. Over time this the area between the two averages compressed along with the Dow’s average true range and Bollinger… Read More »
Interest rates have been moving lower and for a long time. If you were on a fixed income like a pension during this period you’re a happy person. The low interest rate environment produced little or no inflation. This preserved the buying power of your income over time. If, on the other hand, you bought… Read More »
"There is no S&P index anymore. It's just a few names." @CarterBWorth takes to the charts to explain the market's major bifurcation. pic.twitter.com/PYykZ6Z4lP — CNBC's Fast Money (@CNBCFastMoney) July 6, 2020 “Chart Master” Carter Worth checks out the concentration of capital issue in the S&P 500 index. This overweighting problem is why, when traders finally… Read More »
Yesterday we took a look at the Dow Jones Industrial Average chart. The primary focus was on the trend line resistance level situated in the 26,426 area which is being reinforced by the horizontally tracking 200 day moving average. A strong open suggested that the Dow was set to break above resistance and potentially move… Read More »
How will the trading landscape present itself today and later into the week?
The NASDAQ Composite Index made an all time record high last week. At the same time the S&P 500 Index is about 10% off its February 2020 high and the and the Dow Jones Industrial Average is about 15% off its high this year. But take a look at the Relative Strength Index on the… Read More »