The sp500 today formed a reversal hammer and also created a daily MACD sell signal. The RSI moved into the support zone indicated in yesterday’s post during today’s intra day action and the market bounced off this support area to finish almost unchanged. The daily MACD sell signals have not led to anything meaningful on … Read more
The sp500 today did a more meaningful decline than what we are used to seeing. We have gotten used to the sp500 going up in a straight line with zero down days, so today was definitely something different to behold. Today’s decline seems consistent with the sp500 getting close enough to the all important 1300 … Read more
The sp500 continues to trade with astonishing strength in terms of price resilience, but not in terms of volume. Price continues to act strong and we still have not created any bottoming tail on the monthly, quarterly or yearly price candlestick chart of the sp500. The fact that the market is unwilling to create any … Read more
Based on the weekly DJIA chart we can see that the DJIA has formed a minor weekly topping tail right at previous key shelf resistance. This should be an important clue that the market is ready for a reversal from this supply area. I think it is still possible we could test the 52 week … Read more
The Dow Jones Transportation Average is a great example of the type of market we are dealing with now. We are certainly not dealing with a volatile trading range type market. Quite the opposite. We have a market that is trending higher in persistent trend fashion and relieving overbought conditions by going sideways. Looking carefully … Read more
There are some signs of a possible short term downside reversal in the market today but we do not have confirmation yet. We also have possible signs of a weekly trend change developing but again, no real confirmation yet. The NYSE Composite index put in a potentially bearish daily shooting star reversal candlestick today. We … Read more
Today is the type of day in the market that almost needs no explanation because of the somewhat obvious signal being sent. Today was a clear sign of strength in the market and the closing candlestick was almost a marubozu candlestick which shows clear strength and a persistent close. Today’s action seems to seal the … Read more
The market is having a hard time letting go of its bearish tendencies. Once again I have to say that I am pleased that the BOT short signal is still intact. The market does not appear ready to break north of 1201 on the sp500 any time soon. It did appear like it would after … Read more
It is starting to look like the recent correction we have seen in the sp500 is coming to an end. The stage appears to be set for some type of Christmas 2010 rally that takes the sp500 to possible new 52 week highs. The reversal today was quite significant and occurred at the bottom of … Read more
I am switching back to a Long Signal only if the Sp500 gets and stays above 1201. The 1201 level on the sp500 is important enough that if breached to the upside could lead to that cup and handle pattern I have been talking about for some time now. It is looking like the market … Read more