Chartology

An Oil Gusher: How Crude Oil May Have Drilled Out A Bottom

With Crude Oil (WTI) Drilling Lower Almost Everyday, The Market Finally Hit Oil And A Geiser Erupted… I have been looking for a potential bottom in crude oil for a couple weeks now, and it appears we finally have a meaningful low. Prices erupted Thursday and Friday to finish the…

Is The US Dollar Correction Over?

The US Dollar correction began in March, following a top and ensuing retest that failed in April. It has lasted about 5 months thus far and is likely to end soon (if you believe that a new bull market has started). And after the recent thrust lower, many traders are wondering if…

S&P 500 Market Update: A Look At Key Fibonacci Levels

Well, it’s finally Friday. What a week. The deep move lower for stocks on Monday and gyrations that followed will give traders plenty to think about into the weekend. No doubt, the stock market rally off the lows (at least thus far – it’s only mid-day!) has taken some of the…

Did Crude Oil Prices Just Bottom?

With Crude Oil prices having bounced sharply from our support targets, there’s strong evidence that the large downward move in oil prices may be complete. Looking forward, we do not expect prices to soar to 2013 levels, but traders can probably catch good moves in the coming weeks and months with an…

Dow Jones Industrial Average Nearing Critical Resistance Level

Monday was pretty scary for traders. Whether that’s just a trading bottom or a more meaningful bottom, no one knows just yet. But it does appear that the rally out of Monday’s deep decline in the Dow Jones Industrial Average (DJIA) has reached a critical technical resistance level for traders. That…

Why Market Volatility Will Be Around For A While

There is a lot going on in the land of market volatility. Readings are extreme.  On Monday, the Volatility Index (VIX) surged to the highest since January 2009 (Chart 1), and the Russell 2000 Volatility Index (RVX) to the highest since October 2011 (Chart 2). Note that both these market…

Spike In Fear Says Be Open To Market Bottoming Process

Some of the charts in this post are weekly charts, some are daily charts. To avoid confusion, you can see “Daily” or “Weekly” in the upper left corner of each chart. Monday Was A Rare Day Monday’s session saw an “oversold” CCI reading of -413 on the S&P 500’s weekly…

My Thoughts On The Market Decline And A Technical Update

For the past several months, active investors have been trained to buy the dip. Or as many have said and written on Twitter, “just BTFD” with emphasis. Well, instead of the typical 3 or 4 percent pullback, this time the market had troubling intentions. But, when you think about it,…

The Rotation Report: Stocks Got Ugly, And Fast

To end the week we saw some market carnage not seen since the last bear market. Friday, sectors and groups across the board crashed into and through key supports. Given the excessive downside breadth on stocks and panic readings on sentiment measures, it’s an interesting bounce setup short term. However,…