Technical Look at the Broader Market on Multiple Timeframes

January 31, 2016 · Posted in Daily Charts, Indices, Market Overview · Comment 

Last week’s erratic price action played out in a defined range and unexpectedly helped to stabilize the markets. Friday’s strong session was the icing on the cake and transformed the weekly and monthly candles from neutral to bullish.

99979.SPXdailychart

Early in the week we noted that the stochastic oscillator on the daily S&P 500 chart, which we have been following closely for several months, gave a bullish signal. The oscillator is now crossing its centerline and the next level of technical resistance is the former support-turned-resistance of the declining channel, currently in the 1970 area.

99979.SPXmonthlychart

The action over the last weeks formed two hammer candles in an important area of previous support. Stochastics on this time frame is just making a bullish crossover and exiting an oversold condition. The relative strength index is improving but remains under its centerline, reflecting a lesser degree of positive momentum, and the accumulation/distribution is back above its 21 period average after briefly dipping below it.

99979.SPXweeklychart

Finally, the potentially positive momentum shifts seen on the faster timeframes has yet to show up on the monthly readings, but a bullish hammer candle formed adding further significance to the 1875 to 1900 area and the A/D line continues to track above its signal line.

The technical indications suggest that the bounce has more room to run, but it will be interesting to see how confidently the broader market responds to its first level of resistance.

Cheesecake Factory – Volatility Squeeze

January 29, 2016 · Posted in Daily Charts · Comment 

Here’s a link to my analysis of the Cheesecake Factory (CAKE)cheesecakefactory-insidelarge_139x90 chart published on TheStreet.com this morning.

Technical Analysis of Macy’s, Verizon, and Dollar General Charts

January 26, 2016 · Posted in Daily Charts · Comment 

Here are links to my recent analysis of Macy’s, Tecnical Analysis of Verizon, and Dollar General published on TheStreet.com.
dollargeneral7_139x90

Short Term Stochastic Buy Signal Triggered

January 26, 2016 · Posted in Daily Charts, Indices, Market Overview · Comment 

This is another stochastic oscillator update. We have been following the overbought and oversold signals on this indicator for months and it has reliably identified shifts in the short term trend. It’s made a bullish crossover and is moving out of an oversold condition, signaling a potential short term move higher.

image

The Stochastic Signal That Will Trigger the Bounce

January 19, 2016 · Posted in Daily Charts, Indices, Market Overview · Comment 

I have been highlighting the efficiency of the stochastic oscillator in identifying short-term trend reversals in the S&P 500 index for the last several months. When the oscillator makes a crossover in an overbought or oversold condition and then moves out of that zone, the index is likely to see several days of countertrend action.

99978.SPXchart

Currently, the index is testing the August and September lows and is attempting to stage a bounce at this key technical support level. The stochastic oscillator has made a bullish crossover and is rising but is still in an oversold condition.

Time Warner – Bull Flag Set-Up

January 19, 2016 · Posted in Daily Charts · Comment 

Here is a link to my analysis of Time Warner (TWX) published on TheStreet.com this morning.

warnerbrothers-large_139x90

Are the FANG Stocks Ready to Bite Back?

January 14, 2016 · Posted in Daily Charts, Market Overview · Comment 

Here is a link to my analysis of the FANG stocks published on TheStreet.com this morning.

facebook10283-large_139x90

Hasbro vs. Mattel: The Toy Wars and the Potential Victor

January 12, 2016 · Posted in Daily Charts · Comment 

Here’s a link to my article on Hasbro and Mattel published on TheStreet.com this morning.

mattel-insidelarge_139x90

Watch for This Reversal Signal on the S&P 500 Chart

January 9, 2016 · Posted in Daily Charts, Indices, Market Overview · Comment 

The recent retest of the support line of the declining channel on the S&P 500 chart needed to hold long enough for the stochastic oscillator to readjust and turn upward, in order to duplicate the bullish reversal signals it has been sending in the past. But the retest failed dramatically, taking the index back down through the support line of the channel pattern and further suppressing the stochastic oscillator.

99978.SPXchart

The oscillator is clearly oversold and, as I have been highlighting for some time – when the oscillator makes a crossover in an overbought or oversold zone and then moves out of that zone, it has signaled short term reversals. That said, the stochastic oscillator is a bounded oscillator and can stay in an extreme condition for an extended period of time.

99978.50pecentchart

One other indication that the S&P 500 is oversold and due for a bounce is the number of stocks that are above their 50 day moving average. The chart shows that only 13% of the stocks in the index are above that average, which is back down to last year’s September/October readings.

At this point, patience is required along with a bullish stochastic signal and an identifiable candle reversal pattern.

Gold Countertrend Trade

January 7, 2016 · Posted in Daily Charts · Comment 

Here is a link to my analysis of the SPDR Gold Trust Shares (GLD) published on TheStreet.com this morning.

goldbarstwo_139x90

Next Page »