As we open this Monday we have a bullish and a bearish pattern in the S&P 500 index. On Friday we had a nice breakout up through the down trendline in the SP500. Not only did this breakout close on the daily and weekly chart but it also occurred on higher volume giving it more validity. This argues...
Well Its clear by now that the last down wave was already completed and we are in a good bear market rally. I say bear market rally and not a bull move for three reasons. First, no bear market has ended before the end of the 4 year cycle since World War II and that cycle doesn't end until mid next...
The last four days have had nice strong rally with two 90% up days. However, we are still below the down trendlines which keeps us looking at the market in bear mode. If we step back and look at the big picture on a monthly chart, the SP 500 has broken down from a double top. Shortly after a breakdown...
Well, when everything points to good rally and nothing happens it is time to look out. As I pointed out in chat yesterday the QQQQ and the SPY broke their two day up trendlines to the downside aborting the uptrend. We can get a very nasty down swing here. The Q's have broken down from a double top...
Technically, the market appears to be at a multi week low based upon divergences, short term oversold indicators, and by chart patterns. In the last two days the Dow Jones Industrial average has fallen to new bear markets lows, however it is not being confirmed by a number of other indexes. 1) The Nasdaq...
The market is supporting two contrary technical patterns. The first is bullish. The market is starting to break out of reverse head and shoulders which projects a Dow of at least 10,000 For this pattern to be ideal we need to see some good volume on the breakouts. The second pattern is bearish. We also...
The market appears to be approaching an intermediate low shortly. There have been three waves down from the last bull market high and we currently are in wave 5 of the last wave. And within this 5th wave we appear to be forming an ending diagonal or descending wedge formation The ending diagonal is one...