The market is looking a bit exhausted at this point. I issued a BOT Short Signal in my previous post because there seems to be enough evidence building up that says we should at a minimum do a gap fill of several days ago and maybe some more downside after that to work off the … Read more
Instead of hesitating I am going to just go ahead right now at 1219 in the sp500 and issue a BOT Short Signal. This could easily be another whipsaw but I am going with my gut feel right here and based on the way a lot of different chart elements are shaping up. If I … Read more
I had a quick look at Suri Duddella’s website and notice that he is identifying many potential bearish gartley Fibonacci patterns on some important stocks. These also appear to have formed in many indices as well. The patterns on a number of stocks and indices as shown on his website seem to indicate some type … Read more
Have you ever walked on a frozen pond before? Do you remember how you walked very carefully over it and then probably stepped very lightly on the ice to ‘test it’ to be sure that it was solid enough to keep walking further? Well we may be close to a similar process in the DJIA. … Read more
I have been reviewing the long term quarterly charts of the Dow Jones Industrial Average in the current decade and the decade of the 1970’s. The 1970 period has provided me with some enormous cutting edge clues as to our current long term outlook. The structures are not exactly the same and one should never … Read more
Today was a clear sign of strength in the sp500. Today we printed a marubozu candlestick on the daily chart which is a clear sign of who is in control of the tape. There was almost zero bottoming tail and almost zero topping tail on today’s candlestick. Signs of strength are great, but they still … Read more
Today the US Dollar Index made a key break down below key 3 year support range. I wrote about the dollar index yesterday indicating that I expected weakness into November 2010 and a possible break of support. I did not expect this break to occur the next day, but this is how it looks today. … Read more
Today the Dow Jones Industrial Average accomplished a key milestone. It broke back above and into the very important resistance range that has defined a top for the DJIA several times before. If the DJIA is able to hold a weekly, monthly and then quarterly price breakout into this range, then it implies that the … Read more
The Nasdaq 100 Index appears to be on a mission towards the 2223 to 2239 level which is a key level of resistance and is likely to cause some type of downside reaction. We could get there as early as mid November 2010 or perhaps a bit later. I think it is clear at this … Read more
It seems pretty clear at this point that the Fed does not have a number one priority of supporting the US Dollar. Today the dollar took another huge hit and seems to confirm the new theory I am now operating under that the recent bounce in the dollar index was a dead cat bounce and … Read more