Monday, February 22, 2010

Weekly Review of Stockcharts.com Publishers' Charts

It was another good week for bulls as markets closed higher. Is there anything new to add to proceedings?

Anthony V Caldaro of Objectiveelliottwave hasn't added too much to his charts. The one thing of note on the 60-min S&P was the bearish divergence in the RSI.


Richard Lehman of Trendchannelmagic.com is skeptical of the advance - even if Friday's gains surprised him

2/20 -- What looked like a major turn southward on Friday morning came bouncing right back to stay within the current short term upchannels, albeit crawling along the upper lines. The resilience of this rally lends question to whether we have seen the low and are off to the stars again. I still think not and that the short term is peaking, but one has to respect theshort term uptrend until shown otherwise.

2/18 -- Another up day keeps the equity indexes at the very tops of their short term channels and highly vulnerable. The Fed in its infinite wisdom decided to announce the first tightening after the close today and before an expiration day. That will make Friday a very interesting day and no doubt leave many bulls quite aggravated at the Fed.

2/17 -- Once again: dollar sells off, stocks and commodities soar. I know we don't want that to be the reason things are rising, but the correlation is way too strong to dismiss. That brings the major equity indexes up to the top of the blue minichannel now on the short term charts. I'd say that spells vulnerability, but if the dollar swoons again, things are likely to find a way to move up further, even if it means steepening that channel.

2/13 -- Except for the Dow, the short term charts have all broken upward through the purple downchannels that began in mid January. Some (like RUT and FXI) have come back and successfully retested that purple as support. That gives a nod to further short term upside. However, the blue mini channels are relatively flat and do not have the look of strong new upchannels. In addition, the long term charts broken down through the first green target and are heading toward the second. Therefore, I view the short term up move as tenuous and likely to end within days and head lower.

Michael Eckert of EWTrendsandcharts.blogspot.com has labelled a wave two top (third wave down to begin) in the Russell 2000 after it tested the 45-degree former support-turned resistance fan line.


Same true for the S&P?


Interesting swing trade coming up for the S&P on the 5-min chart


Yong Pan of Cobrasmarketview has seen a sharp shift to bearish internals over last week's neutral set up (contradicting the rise in the markets)


Noted overheating in the SPY on the ChiOsc


Big test at the 50-day MA


Joe Reed offers his summary:


CCI isn't far off a top


Will stochastics of the the Summation Index support a 'buy'?


The Bank Index has traded in a well-formed range since August 2009; stochastics have worked well in this environment


Finally, another take on the Russell 10-min using EWT by Daniel Millard of Danericsellitowaves. The Russell 2000 is leading the markets so what goes here goes for tech and large caps next. Daniel has also plumbed for a wave ii top; time to sell/short the longer wave iii down?




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