Major Indices

Pre-Market Chart Watch: Russell 2000 Ready To Breakout?

Volatility has returned to the markets and with it has come increased beta. This likely has many traders rejoicing, but considering the big move yesterday and pre-market move higher today, it may depend on directional bets. That said, the iShares Russell 2000 ETF (IWM) is nearing an important juncture. Just two days ago, the Russell 2000 was sitting on the brink of a deeper correction, holding near the intersection of

S&P 500 Technical Support Update

It took just 6 days to wipe out nearly 100 points on the S&P 500 (SPX – Quote). With all eyes looking forward to a “Santa” rally, many were caught off guard. For the record, the Santa rally typically doesn’t start until next week, so we may still get one… albeit from lower levels. Here’s one of my tweet’s from last Thursday that summed up the action heading into Friday: Bears

Chart Focus: Why The Small Caps Are Important To Watch

As I type this quick research note, the US equities markets are set to open lower. In fact, the last I looked, The iShares Russell 2000 (IWM) was trading around 114.85 in pre-market (down almost a percent). And this has the small caps index near two levels of technical significance that could alter the path for equities in December. First, there is a band of support that forms across the November 19 (114.37),

Did Tuesday Provide A Bullish Signal For Stocks?

Major indexes find themselves at a critical juncture. On one hand, longer-term patterns are clearly bullish, the October recovery was such a statistical outlier that it probably reflects tremendous buying support in the market, and we have a (much weaker than is usually assumed) bullish seasonal tendency for the remainder of this month. On the other hand, macro news does not appear to be constructive, and, more troubling, European and

S&P 500: Near-Term Distribution Patterns Emerging

We ended last week with some kind of distribution forces in the S&P 500 (SPX – Quote) as a negative outside day pattern developed. This pattern is an engulfing pattern in which the daily high was above the prior day’s high, the daily low was below the prior day’s low, and the closing price was towards the low end of the daily trading range. There are some varying interpretations of distribution

S&P 500 At Resistance: What’s Next For Stocks?

The relentless grind higher continues for the S&P 500 (SPX – Quote), as the broad equity index recorded a record high closing of 2072.83 heading into the holiday. What’s interesting about that closing price is that it aligns perfectly with a key resistance level for the S&P 500: The 1.272 Fibonacci extension at 2073. I posted about this key resistance level last week following the Chinese central bank rate cut.

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.

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

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