The tape action has really been tricky on an intraday basis and near term basis. It seemed quite clear that the market was unable to break the recent lows with the lackluster volume, but once again the market has sold off into end of day and created what looks like a very ugly closing reversal. … Read more
I have been near term bearish based on several factors evident in the market recently. But it is clearly evident from yesterdays price action in the SPY ETF that the SPY is simply not pushing down with heavy enough volume and has also recently tested a previous important price swing on 19% less volume. In … Read more
The sp500 currently has the appearance that it wants to bounce from current levels. My take is that we do not bounce and continue to go into full flush out mode as we reach the apex of volatility in the next few days. My take is that the tape is currently showing a ‘running correction’ … Read more
The beauty of technical analysis of the sp500 is that it need not be excessively complicated. Simple is great especially when it comes to the stock market timing. Simple is usually what makes the most sense. In the long term time frame the simple argument is that we are topping in a major head and … Read more
Over the course of the last few weeks I have had a bearish slant on the market indices from a long term perspective particularly the monthly chart time frame. I have to admit that on the daily time frame right now I am not seeing much follow through on the downside. This could mean one … Read more
The market is not following through with bearish tape action today and it does put into question how much staying power this decline really has. The weekly price bar may finish as a reversal hammer which could be bullish for next week. Also there is a bullish divergence on price versus MACD histogram. The downside … Read more
The tape today was weak but it had the disguised appearance of being constructive. The slow grinding type pattern could have been interpreted a number of different ways. My first reaction to today’s tape action was “where is the beef” ? The previous two market trading days were essentially reversal hammers. And so the questions … Read more
Assuming the DJIA can get down to the 12,700 level in the days ahead, there should be a sizable upside bounce from this level (or within 10 to 20 points above or below this level) which may serve as a possible entry point for a new short position. At this juncture it looks quite probable … Read more
Some traders are pointing out possibilities of a stock market crash this May 2012. On several other occasions in the past on Best Online Trades I have looked closely at scenarios where the market was patterning similar to previous crash formations such as 1987 or 1929. Most of the time these types of predictions fail … Read more
The yearly chart of the sp500 was looking bullish for a long time and in fact during 2012 continued to look bullish for the simple fact that it was able to break up north through and above the 2007 bear market down trend line. As with any price chart, there is always the conditional event … Read more