Reverse Engineering Chart Patterns – Prevent Weekend Chart Hypnosis
Reverse engineering a chart pattern is a simple but unique way to upgrade your scanning methodology, and it can prevent highway-like chart hypnosis.
Category Archives: Market Overview
The DOW – Bullish Breakout From a Moving Average Squeeze And There Is Plenty Of Upside
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 »
The Volatility Index And The Anomaly At The 26 Level – “The line must drawn here! No further!”
The market got a scare in the last two hours of trading on Monday. There was a sharp drop in equity prices on news that some businesses in California were being closed again and of renewed US/China tensions in the East China sea. The broader market dropped sharply and the Volatility Index jumped closing the… Read More »
Have Interest Rates Bottomed? – Is It Time To Buy The TBT?
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 500 index anymore.” Here’s Why.
"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 »
The DOW : Monday’s Focus Was On Breaking Through Resistance – On Tuesday The Focus Is On Holding Support
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 »
Caution! – NASDAQ Composite Chart – Bearish On Multiple Time Frames
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 »
S&P 500: Watch These Levels On The Weekly Close
The feeble but positive bounce on the daily charts of the major market stock indices on Thursday created individual doji candles on their weekly charts. A doji as we all know is a closing print at or near the opening price of a stock. Thursday’s session finished right about where the indices opened on Monday.… Read More »
The NASDAQ Composite: It’s Outperformance Could Be A Bad Sign
The bottom line is that five large technology stocks cannot support this market forever. They will yield under the weight of their own market cap and take down a vulnerable looking broader market with them.
Another Bearish Divergence – Like We Saw In February – Just Before The March Drop
Back in February this year my technical take on the market was featured on an “Off the Charts” segment of Mad Money. I noted that there was an interesting bearish divergence going on between the S&P 500 Index and the S&P 500 Equal Weighted Index. The familiar S&P 500 Index is dominated by five major… Read More »