Last time price got close to the gap zone, it fell away quickly.
This time, price can't be pushed away. If we chew up all the sell orders before running out of bullish momentum we should break right through the gap zone.
The energy sector has been strong and should help pull it up. See the strong correlation to oil prices at the bottom of the chart.
NQ just completed a head and shoulders. That can mean anything, but it sure makes things interesting.
RTY has clearly taken the lead in relative strength since the markets bottomed in march.
More money is going to a larger group of stocks in RTY, and it looks like the tech bubble is paying for it.
A ratio chart divides the value of the Nasdaq 100 by the value of (S&P 500+Dow 30+Russell 2000). The large spike in the blue line to the left illustrates how the NQ became so overvalued in relation to the S&P, the Dow, and the Russell.
If the ratio pulls back, I would say it may find its balance around the lower red line, after retracing the recent parabolic...
The same daily pattern has shown up for a third time since the COVID recovery began. It's a low volatility day (small candle), followed by a small gap down into a volatile and choppy period for four days, then a reversal into a new secular bull run.
It looks like a planet and a moon, hence the stupid name.
Since 3/23/20 when all three bottomed out, the SPX (green) has outperformed the Europe, Australia, Asia, and Far East ETF (blue, ticker symbol EFA), but both are lagging behind the Emerging Markets ETF (orange, ticker symbol EEM).
The SPX has been leading most of the way, but last month the Emerging Markets became #1.
Investors have banked on strong recovery...
Two global economic crises so close together in world history, what are the odds?
In 2008, the USA stock market bottomed out and began it's recovery just as the EURAUD pair hit a top and sold off.
This correlation to the SPX, from a global market view, is interesting because there is such a great shift from negative 80 to positive 80 in a 4 year span after the...
The correlation coefficient between gold futures and Bitcoin started out negative for a few years, but after Feb '14 they began to move together. BTC and gold have now been in a five year cycle where the correlation will jump to +72, then drop to a higher low, then up to +72 again, over and over. It seems reasonable that the correlation could soon become stronger...
Both are daily charts of Apple. On the left, a cup and handle formation has recently resolved within the larger trading range. First there was a test of upper resistance (I call it a kiss hello, probably not the first to call it that), then a small pullback (the handle), then a breakout. Old resistance became new support, and when price came back, it said thanks a...
Okay, anything can play out, but right now these are the two big possibilities. Intraday trades could have a lot of wind at their back if one of these high timeframe formations resolve. May the best chart pattern win.
I'm not a crypto hater by any means, and I hope this thing remains bullish all year and hits $100K.
However, hopes and dreams are not as important as what the chart reveals. Nothing is more important than the chart. This chart is telling me to pay attention to the current Bitcoin correction.
The pattern resembles a cup and handle. It isn't perfect but it can be traded as a C&H just the same. If you drop down to intraday timeframes, you'll see a smaller cup and handle on the 4HR.
This pair has a high correlation to SPX, and major turns and corrections in the pair have often led the turns in SPX since the COVID bottom.
The measured move of a head and shoulders pattern breaking the neckline may or may not happen here. That would put price around 1.57000. But the prospect of the measured move accompanied by the recent history of price action to rise and fall quickly through the current level is enough to get my attention for a lower timeframe trade opportunity. Anything to stack...