A spinning top candlestick formation on the weekly bar of the S&P500 shows the sideways action we faced last week. As stated in the prior week’s forecast, volume is quite lackluster and we are seeing a strictly news driven market.The weekly chart is quite messy and the price patterns forming are weak as well, with the exception of the head and shoulder formations on the S&P, Dow and Russell. The NASDAQ could be in a H&S formation if you look…
We saw no follow thru this week as a hammer was put in on week 26 of the S&P500 chart. Until the tail of week 26’s candle is broken to the downside we remain a sideways bias and believe that the bottom has been put in for the year. The summer slowdown is in full force and we should continue to see sideways trading.
Half the year is over, this is a good time to look back and reflect on trading thus far. As we look at the first 25 weeks on a weekly chart of the S&P500, we are essentially right back where we started, trading in a range for the past 8 weeks. All charts are now clickable to access larger version! The internals opened Monday weak to the downside with -2000 readings on the NYSE A/D line. The Federal Reserve’s FOMC…
As we continually look to the internals for market confirmation, we want to keep in mind that the Breadth, A/D line and Tick should be used in conjunction with one another to more accurately confirm or deny a move in the markets. The Breadth would be considered the lagging internal of the three indicators with the tick being the front runner an showing the first sign of weakness or strength in a market. With all the top line figures (S&P500,…
Last week created a strong argument for the bulls as Bernanke said the economic outlook may be strengthening. We will be watching the 934.85 level on the S&P as it is the Year-To-Date high. The Russell is also close to breaking its YTD high, the Dow has a good 500 points to go. This week marks the 6th week of the NASDAQ sitting positive on the year at +10%. The S&P and Russell going positive on the year in week…
This week’s internals show the indecision and sideways action that we talked about in last week’s forecast. This is due in part to being at a key inflection point where bears are looking to short and bulls are looking to break and move higher. As we continue to sit in the middle of the up channel, watch for the S&P, Dow, NASDAQ, or Russell to break to the upside or downside.
A slew of earnings announcements came out this week however many at which were less weak than estimates predicted. The NASDAQ internals showed a mixed reading on Thursday where advancing stocks to decliners was negative 624, yet stocks rose 1.3 to 1. The strength in the market is being lead by the NASDAQ, followed by the S&P and then the Dow. The NASDAQ tends to usually lead the market, therefore with many of the big names already reporting earnings; a…
Regardless of the earnings announcements last week, we continue to push higher. The weekly candle ranges are becoming smaller as bears are stepping in to hold prices at these levels. We touched the 875 level on the S&P which was our target in last week’s forecast. We should see resistance at these levels so a pullback in the form of a gap down Monday would be expected.The S&P has held a close relation with the 10-Day Moving Average and can…