Popular posts from this blog

Upcoming "Death Cross" for Russell 2000 ($IWM)

Image
There was some modest buying today from the open, but volume was light and markets are below trading range support established during the latter part of 2024. It's hard to see where the buyers are going to come from given the chaos of Trump. I should add, I listened to Josh Brown's The Compound podcast and he showed an interesting chart of market returns in April-May in the year following a strong return in markets; in essence, selling to pay capital gains tax. Given the precarious nature of markets, and the possibility for this seasonal factor to play out, it's likely we have a couple more months of downward action before value buyers return. If we look at individual markets, the Russell 2000 ($IWM) is looking like the first to signal a long term shift in favor of bears with an upcoming "Death Cross" between the 50-day MA and 200-day MA - perhaps completing before the end of the week. Technicals are net bearish and the volume trend has collapsed since the st...
Read more

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.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too.

Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

Read what others are saying about Zignals on Investimonials.com.

JOIN US TODAY - IT'S FREE!

Popular posts from this blog

Upcoming "Death Cross" for Russell 2000 ($IWM)

Image
There was some modest buying today from the open, but volume was light and markets are below trading range support established during the latter part of 2024. It's hard to see where the buyers are going to come from given the chaos of Trump. I should add, I listened to Josh Brown's The Compound podcast and he showed an interesting chart of market returns in April-May in the year following a strong return in markets; in essence, selling to pay capital gains tax. Given the precarious nature of markets, and the possibility for this seasonal factor to play out, it's likely we have a couple more months of downward action before value buyers return. If we look at individual markets, the Russell 2000 ($IWM) is looking like the first to signal a long term shift in favor of bears with an upcoming "Death Cross" between the 50-day MA and 200-day MA - perhaps completing before the end of the week. Technicals are net bearish and the volume trend has collapsed since the st...
Read more

"Dead Cat" Bounce or Something Better?

Image
It's still a little too early to say, but the bounce is in play and "long" is the place to be. There is a huge amount of overhead resistance and the risk:reward remains tight with moves back to Thursday's lows well within expectations. For the S&P, I would be looking for a rally back to test the 200-day MA, or a fast-falling 20-day MA, whichever is the lowest. Real supply won't kick in until 5,700 is tested, and maybe it will have the juice to get to 5,775 before volume selling makes its presence felt. As the index makes this move I expect to see a decent On-Balance-Volume 'buy' signal, alongside what will be a weak MACD 'buy'; other technicals are likely to remain bearish.
Read more

"Bull Traps" For S&P, Nasdaq and Bitcoin

Image
So, in one fell swoop, the S&P and Nasdaq undid all of the work of 2026 with nasty gaps lower. In the case of the Nasdaq, the ascending triangle breakout reversed into a breakdown with new 'sell' triggers in the MACD, On-Balance-Volume and +DI/-DI. The relative performance of the index to the Russell 2000 ($IWM) showed an acceleration lower after last year's declines. Only stochastics (momentum) is holding on. If one was to be more honest of what's happening, we are likely broadening out to a trading range and it will take a loss of 22K to really flag a concern for bulls. Things are a little more problematic for the S&P. There is a definite 'bull trap' in play following today's significant gap down. Volume rose in confirmed distribution, so this wasn't some fake out to get weak hands out of their positions. As with the Nasdaq, the twin lows of October/November at 6,550 carries greater significance, and we are still a long way from a test...
Read more

Archive

Show more