Week 3 produced a huge increase in volume on the movement to the downside. Pulling out to a weekly timeframe and looking once again at a Fibonacci retracement we remain at the 50% retracement level with a bearish weekly candle. We broke down below the 20-MA and 50-MA, a bearish sign. We would be looking for a lower high to be put in on the daily’s which would indicate the end of the uptrend. The VIX jumped up to the…
Week 2 produced sideways action, however we are starting to see volume and intraday playable price swings come back into the markets. We are still in a clear uptrend and see a flood of stocks making new 52-wk highs, are hardly any stocks making 52-wk lows. A subtle mix of economic news and earnings leaves us in a holding pattern looking to continue on higher.
The markets started off the year on a bullish note. Could this be setting the tone for 2010? We have some room to move higher before hitting some major resistance (prior support). The S&P was the strongest of the top line figures in week 1, but all four indices moved higher. The VIX has broke down to new 52-wk lows and we are looking for volatility to remain low throughout 2010 (at least relative to 2009).
The shortened holiday week was not short of surprises. With the news about Dubai World’s asset woes, downward revision to 3rd quarter GDP, rise in new home sales, and a slew of other economic data, left the markets slightly lower on the week. We have been chopping between the 1114 and 1085 level on the S&P500 and a break outside of these levels will be key in the week ahead. The chop has produced two inverted hammers on the weekly…
Hello bears. Well, let’s not speak too soon. We remain in an uptrend as long as we continue to make higher highs and higher lows; therefore a break of $1020 on the S&P500 would be the technical pivot to break our uptrend. While we remain reactive rather than try and predict market moves, last week’s actions certainly had a bearish flair to it. As the old saying goes, “When the VIX is low look out below.” The VIX rallied off…
We continue to chop sideways as earnings and economic news pours out. We have strong support at the $1075 level and resistance at $1100 on the S&P 500. Some positive economic news was answered by a decline on the market. With clearly defined support and resistant levels on the top line figures we have a good gauge of when to exit trades. We still remain in an uptrend and once that uptrend is broken we will think of taking a…
We remain bullish on the weekly chart of the top line figures. The head and shoulders pattern formed between November of 08 and July of 09 had roughly a 250 point range on the S&P therefore the target is $1200 on the S&P to be completed within approximately 8 months after July 09. We have seen lower volume on this rally a sign that buyers are still hesitant.