Bad is Bullish

Bad is Bullish

After the close yesterday only 4.5% of the stocks in S&P 500 index where above their 50 day moving average, the lowest level since 2011. This oversold indication suggests a tradeable short-term bounce, but what would be even better would…

Bounce is a Bust

Bounce is a Bust

Today’s bounce was a bust. The market gapped higher at the open and then began moving sideways in a narrow range with a downside bias. In the final hour of trading the selling picked up, accelerating into the close. All…

Which is More Incredible The Drop or the Bounce?

Which is More Incredible The Drop or the Bounce?

The open was historic with the DJIA down over 1,000 points and the other major market indices seeing similar percent declines. There has bee a strong snap-back move at this point in the session and the DOW is now down…

The Channel Breakdown and Projected Support

The Channel Breakdown and Projected Support

(Goodbye Trading Range – We’ll Miss You) We finally got what so many wanted for so long – a “healthy” correction. The pundits say that corrections are good things and that we should welcome and embrace them. I hate those…

DOW at Key Fibonacci Support

DOW at Key Fibonacci Support

The DJIA is testing the 62% retracement level of its October 2014 and May 2015 range. It would be a good place to see some consolidation because there is not much in the way of near term technical support below…

Index Chart Follow-Up

Index Chart Follow-Up

The support levels that defined the bottom end of the consolidation ranges the major market indices have been trading in for most of the year were taken out to some degree or another in today’s session, and new lows are…

Lost Levels on the Major Market Indices

Lost Levels on the Major Market Indices

Commentary later tonight after I have a drink.

"Levels"

“Levels”

The Bottom Line on the Market

The Bottom Line on the Market

The March/May zones that have supported the horizontal consolidations on the S&P 500 index and the NASDAQ Composite charts remain intact, but support on the DJIA chart has failed and a breakdown on the Russell 2000 chart may not be…

Russell Riddle

Russell Riddle

The 1205 to 1215 area on the Russell 2000 weekly chart has been an important long term technical level. It contained price for all of 2014, and when that resistance was broken earlier this year its role reversed and it…