The NASDAQ Composite Index has traded down to a key technical inflection point. Support for the Composite resides in an area between the 15,000 and the 14,750 levels. On the lower end of the zone is the 40 week (~200 day) moving average, and the upper bound is reinforced by the intersection of two important… Read More »
Last week could have been a transitional period for the major market averages. The Dow Jones Industrial Average rolled over and sliced through its 50 day moving average, accelerating lower in Friday’s session. The decline in the S&P 500 Index began on Tuesday and picked up speed as the week progressed closing below its 50… Read More »
What is an eveningstar pattern and what does it mean when there are two eveningstar patterns on a chart. An eveningstar is defined by Investopedia as: The evening star pattern is considered a very strong indicator of future price declines. Its pattern forms over a period of three days: 1. The first day consists of… Read More »
Whatever you want to call Bitcoin, a digital currency, a store of value, or a separate asset class of its own, it charts like an equity. It goes through periods of consolidation followed by rally periods. This price action is a function of investor interest and sentiment. The more interest in a stock, the more… Read More »
Since early September many of the large cap tech names have been moving basically sideways. Amazon (AMZN) shares are a perfect example. They have been headed right on the chart in an increasingly tight series of lower highs and higher lows. The price action formed a symmetrical triangle or wedge pattern on the daily chart.… Read More »
The month of November was been a positive one for the broader market, but it was also one that sent a number of mixed signals. The first week saw a sharp jump in the indices followed by a gap even higher to start the second week. But that gap-up day turned decidedly negative by the… Read More »
Back on November 9th a large wick shooting star candle formed on the Dow Jones Industrial Average daily chart and the $&P 500 Index chart. A large dark engulfing candle formed on the NASDAQ Composite daily chart. These candles suggested a broader market pullback was in order. There was a brief decline, but not the… Read More »
The broad market indices seemed to have absorbed and then quickly discounted (to some degree) today’s positive Covid-19 vaccination news. Within the first hour of trading the initial rally in the indices began to fade. They wound up finishing the session near their lows. The Dow was still up nearly 3% and the S&P 500… Read More »
Bitcoin has been making a steady series of higher highs and higher lows since it established its March low. In the process, it has also completed the right side of an inverse head and shoulders pattern. This pattern projects a considerably higher price target. But there is another interesting technical dynamic on the weekly chart… Read More »
Poor start to trading this week. The talking heads are out with a number of fundamental reasons for this morning’s downturn, that they didn’t see coming on Friday. What concerns technical analysts is not so much cause but effect. Simply, how information or misinformation plays out on the charts. The pictographs are where the truth… Read More »