Where to next?

Tuesday was more or less a repeat of yesterday. I don't know if the Russell 2000 has completed a bullish breakout from a handle (where resistance stood at 835), or if a completed test of a broadening wedge has been made? If the former there should be further gains on Wednesday (or at least no close under 835), if the latter then look for a move back under 835.



The Dow has reached is projected target. Fibonacci retracements likely favor a move to the 50-day MA.



The S&P still has some 30 points to run before it reaches its projected target:



The Nasdaq is interesting in that it cleared the 2,580 stumbling block, but volume has hardly been inspiring:




Popular posts from this blog

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Being "Right" but still losing...

Image
I'm trying the Topstep Trader Combine as a sampler to day trading and it's an interesting setup with minimal outlay costs to get started. I'm not a huge fan of their platform UI but everything else has been pretty good so far. Today was one of those days where I waiting (and waiting) for the profit taking to kick in, but by the time sellers made their appearance I had reached my loss limit for the day and so that, was that. You can see all of my whipsaw trades here. For the record, I only work off price action, looking at support/resistance and tells like rapid stop take outs, usually a good sign for a reversal.
Read more

Weak rallies carry a bearish overtone

Image
Buyers make a reapparance after an extended period of selling. However, where in late spring and early summer any gain helped fuel a rally, this time, sellers have control of the market so that any buying will raise doubts as to its capability to dig the market out of its slump. In the case of the Russell 2000 ($IWM), we had a continuation of the bounce off the 200-day MA, although today's gain came off lower volume. The real killer is the relative underpeformance of the index against the S&P; although, in a six-month timeframe is all a bit scrappy.  While bears have an advantage, I would see enough here for bulls to take the index into a test of (soon to be) converged 20-day and 50-day MAs. 
Read more

Archive

Show more