Monday, May 24, 2010

Weekly Review of Stockcharts.com Publishers' Charts

This week's market commentary followed last week's push back to flash-crash lows. What are the prospects for the market going forward?

Anthony Caldaro of Objectiveelliotwave.com has a labelled 'ab' of an abc correction on the S&P 60-min. Was a flat 'c' completed at 1,055.90? Even a zig-zag correction would put a low around 1,030.


Interestingly, the weekly S&P chart has a labelled 'I' wave of a five-wave move higher; has the flash-crash offered a great buying opportunity?


Richard Lehman of Trendchannelmagic.com shows the Dow is very close to a support test of March-2009/May-2010 channel.

5/22 -- To most people, the markets are getting more confusing by the day, but to a channelist, each day brings more clarity as the picture unfolds. I am now able to draw the short term channels throughout, and what I get from that is: A) That the steep decline this week was one leg of a larger move downward; B) That we likely hit the lower line of that larger move on the short term charts and we may rebound for a few days; and C) That the flashcrash was indeed part of the bigger picture except perhaps for the last few hundred points that day.

The long term picture also gave big messages this week. The one-year channels (the ones that go back to March '09 but not to the low) have been broken and the gargantuan 14-month rally is now history. The three-year charts (those that go back to the actual low in March '09 represent the only visible support left for any kind of uptrend. Beyond that, we cannot point to any channel support below the three-year lines, so its anyone's guess where things stop.

More in-depth explanation and charts available in this weekend's 'Channelist' newsletter. For a free copy (if you are not aleady on the list) - e-mail info@trendchannelmagic.com.
Yong Pan of Cobrasmarketview has more bullish than bearish short term trading signals.


Yong Pan's mechanical system covered on Friday, so currently positionless.


But another short signal is still open


However, ther is call for a bottom based on stochastics and bullish piercing pattern


How about broadening wedge support too?

Treasury Yield low bottom too?


Michael Eckert of EWTrendsancharts.blogspot.com has a third wave target of 924.39 for the S&P (so any rally will be minimum in duration and not make it above 1,174)


But below the aforementioned chart is another showing broadening wedge support on the 60-minute timeframe


And a completed 'C' of an 'ABC' on the 30-minute (tied into early 'abc' count)


 Finally, Joe Reed tracks the Retail Index and looks close to a 'buy'




The bank index is another close to a 'buy' trigger




Watch the Summation Index for a buying opportunity in the Nasdaq




So while short terms look bullish the larger picture looks distinctly ugly.

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