News that the US was holding back initiation of new tariffs against China hit the market unexpectedly this morning like a thunderbolt to the ground. The S+P 500 immediately rallied 60 points literally straight up in a matter of minutes on the news putting it once again back above 2900. This move is technically significant,and bodes well for the bulls if they can...
Monday's sharp decline once again below 2900, although not dramatic, reestablished the weekly parallel resistance line cutting across the S+P 500 chart. It is an important resistance line so I''ve taken the liberty to draw it here, across the Weekly Chart so you can clearly see what I am referring to. Once price reenters a price area below the previous bullish...
The Monthly TNX Chart, the 10 Year US Treasury Bond shown here, reveals long term interest rates may be close to bottoming, despite the hysteria going on in the marketplace, that somehow rates are headed to zero here in the US Stochastic Monthly Indicator on TNX is now as deeply oversold as you will see on the chart for the last 7 years, and looks ready to...
Shake Shack, a New York hamburger and french fry establishment, with lines constantly out the door and even down the street for lunch/dinner blew out earnings expectations this past week and the stock experienced a major upside breakout to new all time highs. When a stock is outperforming the market like SHAK did this past week, and breaking out to all time highs...
If you have been reading my posts this week you may recall l that I have written that the S+P 500 had broken down below very important Trend Line Weekly Support at 2900 on Monday this week, and gave a sell signal in turn. Yesterday's sharp price rally in the S+P brought price back above 2900 Support, and with that a short term buy signal. However, as I have...
S+P 500 Daily Chart shows a Bullish Island Reversal playing out with today 'striking advance back above 2900. One thing though that any trader must realize is that what appears to be strikingly bullish day, could turn out to be just a strikingly bearish conclusion the next. There is always a much larger picture going on,and playing out that maybe in direct...
S+P 500 has with today's sharp rally gotten back above e the major Weekly Bullish Trend Line connecting the Dec.2018 Bottom at 2350 with the reaction Low in June at 2728 Make no mistake. This is real. That is why today's sharp rally back above 2900 has brought back into the market new money commitment, and vigorous short covering. Put plain and simple. If the...
I spent much of this trading day watching a Bullish RSI play out in the 30 Minute time frame in S+P Chart. For illustration purposes, I am showing you my favorite simple short term trading indicator "Know Sure Thing Indicator" in the 15 Min Time frame Look at how today's sharp down open in the S+P to 2825 low shows the "Know Sure Thing Indicator" bullishly, at...
Watch 2900 ! This weeks dramatic breakaway gap to the downside in the S+P 500 becomes much more significant if you change your focus to the Weekly Chart. It is there,..that you find that the Weekly Uptrend Line Supporting the entire 2019 advance , has been violated by Monday's selloff. From the bottom on Dec.26,2018 at 2343.96 Connecting the Primary Recent...
Studying both the Daily/ Monthly Charts S+P 500, INITIAL RESISTANCE is found at 2864.33 , the 7/1/19 Close Shown here, with a Red Trend Line Resistance Demarcation Line, running across the chart, this price area defines the quadrant that shocked and forced into silence bulls will attempt to scale. Traders should watch 2864.33 closely. Any rally breaching...
To understand the velocity and magnitude of the current market decline and put it in some perspective, understand this.The price advance in to all time highs in the S+P 500 took 35 trading days in June and July to accomplish. Shown here is the Daily Candlestick Chart of the S+P 500. I have marked off the last 4 day's of waterfall downside price action. Look at...
The S+P 500 has the potential to fall much further than expected. in sharp drop caused by price technically reentering the prior pattern. I have been warning you of this possibility, since the sharp and unexpected break of S+P 3000 after the Fed meeting last week. Shown here in clear triangle representation, you can see price reentering the prior technical...
Line Break Close Only Chart of TNX, the 10 Year US Bond, shows a massive rollover in interest rates beginning in late 2018 from 3.25%, and continuing after the Fed meeting this past week, with new cycle lows as the market continues to drive rates lower by the day. What is going on here ? Clues to the sharp stock market selloff after the Fed meeting can be seen...
Daily Candlestick Chart of the S+P shows a RED BAR Continuation Daily Decline entering into the prior wedge triangle pattern, thus confirming a false upside breakout above 3000 to an historic all time high. Think about that thought for a moment. The all time high in the S+P 500 at 3027.88 has been technically invalidated, with this weeks sharp price...
It was just a few days ago that I showed you the VIX Chart on tradingview and suggested to you that it was only amatter of when, not if.. the pattern setup would resolve with an upside breakout in Volatility, and a sell signal in the market. Lo and Behold, this past week, on news of the anticipated .25 cut interest rates, the stock market as measured by the S+P...
I've taken the liberty to draw a proprietary Key Parallel Trend Line across the Daily S+P 500 Chart, (Shown Here) That "bounce line" cutting across the middle of the chart represents in my opinion perhaps the most key support line to hold price above at this time. TRANSLATION= MAJOR SUPPORT That Support Line currently comes in on the Daily Chart between 2937.50...
Rarely will you see a chart pattern like the current 4 Hour Chart Pattern in the S+P 500 What you are seeing here is an almost a complete reversal of fortune, showing the upside breakout above 2954 to the All Time High of 3027.97 just last Friday... and this week remarkably undoing the entire upside advance with large scale in a flash. Make no mistake. This...
If you recall my last post on the Dow Industrials, I warned that the Dow had not made a new all time high last week, while the S+P and Nasdaq had done so, a bearish divergence I found telling at the time. July 31 sell off after the Fed meeting, a sharp pattern breakdown in the Dow, to my eyes is quite bearish technically as it occurred when it should not have...