Today the sp500 showed a serious sign of strength and rejection of the 1170 level. I talked about this level in yesterday’s post as being important in terms of support and possible handle support of a very large cup and handle pattern. Today created a bullish triple P in the MACD histogram which would be … Read more
Have you ever walked on a frozen pond before? Do you remember how you walked very carefully over it and then probably stepped very lightly on the ice to ‘test it’ to be sure that it was solid enough to keep walking further? Well we may be close to a similar process in the DJIA. … Read more
I have been reviewing the long term quarterly charts of the Dow Jones Industrial Average in the current decade and the decade of the 1970’s. The 1970 period has provided me with some enormous cutting edge clues as to our current long term outlook. The structures are not exactly the same and one should never … Read more
Today was a clear sign of strength in the sp500. Today we printed a marubozu candlestick on the daily chart which is a clear sign of who is in control of the tape. There was almost zero bottoming tail and almost zero topping tail on today’s candlestick. Signs of strength are great, but they still … Read more
Today the Dow Jones Industrial Average accomplished a key milestone. It broke back above and into the very important resistance range that has defined a top for the DJIA several times before. If the DJIA is able to hold a weekly, monthly and then quarterly price breakout into this range, then it implies that the … Read more
The sp500 today continues to power higher on seemingly endless amounts of good news. A buy signal was confirmed based on the MACD histogram today as we closed above yesterday’s high. Volume ticked up today as well on the SPY ETF. It appears now as though the sp500 is on a mission for 1219.80 which … Read more
The sp500 today did not confirm yesterday’s potentially bearish hanging man candlestick (sigh). Instead the bear forces which almost seem non existent as of late were not even able to print a lower low compared to yesterday’s low. There is now only one trading day left in October 2010 or 6.5 hours of trading which … Read more
Today the sp500 printed what looks like a perfect hanging man candlestick. Since the entire rally starting in early September 2010 I have not seen such a perfect hanging man candle. It is called a ‘hanging man’ candlestick because that is exactly what it looks like, a man hanging with his legs dangling. Today’s hanging … Read more
The 5 day EMA is pretty close to 10 day EMA crossover in the summation index. In addition the RSI of the summation index is ready for a break down below the 70 line. The is a slow moving indicator and it is still going to take some time before we can stick a real … Read more
Here is another way of looking at the sp500 chart in combination with the 2009 long term up trendline and the lines that connect the recent action in April 2010 and October 2010. It appears to take the shape of a very large symmetrical triangle that has seen many rejections on different portions of the … Read more