The market refuses to go lower in week 36. With repeated attempts by the bears to push the market lower off the open, the lower prices were quickly rejected by the market. Friday was quite lackluster, perhaps due to the fact that it was 9-11. Friday’s breadth, highlighted in orange represents a market at parity.Gauging off the weekly chart, we should see a continued rally in the markets as we are breaking above the hammer formed in week 35. However,…
I don’t like to toot my own horn, but in this case I will pat myself on the back… http://tjmactrading.blogspot.com/2009/08/top-is-here.html http://tjmactrading.blogspot.com/2009/09/watch-for-bounce.html
Monday’s gap down was short lived as the bulls took over once again. As we move higher week after week, we continue to harp on the Fibonacci levels and targeted support and resistance. The S&P pulled right back to the 38.2% Retracement Monday before moving higher. The Fibo 38.2%, 50.0% and 61.8% are the most commonly talked about areas, as these tend to act as the strongest resistance points when drawing a retracement. Fibonacci lines can also be looked at…
Week 32 put in lighter volume trading and formed a doji on the weekly bar, however the more we move sideways here the more of a bullish bias we will take. Sideways action after a vertical move higher forms a bull flag formation (a bullish chart pattern). While, not much has changed from week 31, the sideways action creates a base of support here which if broken to the upside should send stocks higher. On the weekly chart of the…
Another positive week across the board with good news as the employment situation bettered in July. Small Cap and Tech continues to lead the market higher which is common when pulling out of recessions in past. We saw the bullish internals outweigh the bears this week with high/low closes of +1938/-536 on the NYSE, however +1167/-1003 on the NASDAQ. A pause could be in store, but sideways movement would be considered a positive thing at this point. The S&P500 came…
We saw a tug of war at these levels which was confirmed by the breadth, staying inside 3:1 all week long on the close of the day. We put in a spinning top candle pattern on the weekly bar and two inverted hammers on the daily SPY.We have two support levels on the S&P500, the 975 level and 945 levels. If/when a pullback occurs; watch how we act around these levels. If we blow right through them then it will…
The market internals started and ended the week strong, however midweek showed some divergence as the broader market paused only slightly. We have seen quite the move higher off the lows set back in March 09. The S&P500 is +47% from the March 09 lows, Dow +41%, NASDAQ +55%, and Russell +60%. These moves are incredible and to have the VIX retract nearly 70 points is astonishing. Looking back only a mere 6 months and option premiums were through the…
With a market breadth of 28:1 and 10:2 confirming the intraday moves higher, it was apparent that they would hold throughout the week. The breadth is an indicator of volume flowing into up stocks compared to volume flowing into down stocks. Essentially 10 and 28 times more volume was flowing into up stocks than down stocks. Any reading over 10 is extremely bullish. 1:1 is parody.When a pattern as strong and clear as a head and shoulders fails, the amount…