Chartology

Why Investors Should Watch This NYSE Divergence

The New York Stock Exchange Index (NYSE) is an extremely important gauge of overall market health. Why? According to the New York Stock Exchange website (www.nyse.com): “..The NYSE Composite Index is designed to measure the performance of all common stocks listed on the NYSE, including ADRs, REITs and tracking stocks. In January 2003 the NYSE reintroduced the NYSE Composite Index under a new methodology that is fully transparent and rule-based.

Crude Oil Prices Pop And Fade: How Far Can The Rally Go?

The big news of the morning is the global effort to ease continues with China’s rate cut and Mario Draghi’s strong words, “It is essential to bring back inflation to target and without delay.” Crude Oil (WTI – Quote) certainly has gotten the message ahead of OPEC’s key Thanksgiving Day meeting next week. As we speak, Crude Oil has broken a 1 month downtrend and is attempting to regain an important

SP 500 Update: Oops, Central Banks Did It Again

It’s the rally that just doesn’t want to exhale. And this morning the S&P 500 (SPX – Quote) has taken market shorts to the brink. Futures are up about 16 points, reaching as high as 2070.95 over night.  What set off this overnight euphoria? The same thing that occurred just 3 weeks ago out of Japan… yup, more easing. This time it comes courtesy of China, as the Chinese central bank

Is Netflix Stock (NFLX) Ready To Explode Again?

Netflix stock has long been a favorite with option traders due to its high stock price, high implied volatility and explosive stock moves. But following the severe selloff in mid-October, Netflix (NFLX) has been very subdued. Since October 23rd, Netflix stock as traded in a very tight range between $374.60 and $395.52. That’s only a range of 5.5% in the last month for a stock that has a history of moving

The Importance Of The All Ordinaries Index And AUDJPY

The All Ordinaries Index has yet to hit its SELL pattern target so this pattern is still valid.  The zone of 5760-5835 is the key with the old realiable .786 Fibonacci retracement up at 6060 the highest it should go if the sell pattern remains valid. As you know we NEVER know which one works or doesn’t… What makes this particularly relevant, in my HUMBLED opinion is its correlation to the

Is Citigroup Stock Poised For A Breakout?

Today, I want to focus Citigroup (C) stock. And more specifically Citigroup stock chart. In the daily chart (below) you can see the classic looking cup and handle pattern setup brewing. The $54.00 – $54.50 level being the cup resistance line, then the handle/bull flag taking place in the last week or so. And notice how the handle is forming on relatively low volume, which I like to see. One cautionary note for

Chart Of The Day: The S&P 500

Well, this chart isn’t going to be flashy. And in fact it may be downright boring. Let’s take a look at the S&P 500 chart from the past few weeks, focusing on the past week or so in general. The S&P 500 has traded in a fairly narrow range for the past 6 days, leaving behind a trail of slowing momentum. Will this underlying weakness lead to a pullback in stocks next

Is Natural Gas Setting Up For A Tradable Rally?

Natural Gas has gotten plenty of attention with volatile moves during the latest polar vortex. Prices are down 12% this week as of this writing. Is the rally over? Or was the recent move higher the first leg of a larger move?  Let’s dig in. Looking into the chart, a few things stand out. First, there is a major confluence of support around the 3.90-3.95 area. This is the most