Major Indices

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

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

S&P 500 Fibonacci Pullback Sequence: About To Play Out Again?

The structure of the S&P 500‘s (SPX) uptrend continues to follow a script that has become even more consistent in 2014 than it was in 2013.  The following sequence has pegged each trend regime – up, neutral, and down – this year as the index completed major oscillations in January-March, March-June, July-September; and is now about to finish another. Price moves sideways in a tight (1-2%) congestion zone for 2-5 weeks,

SP 500 Rally Puts Key Price Target In View

The S&P 500 has rebounded from the October lows, making it a good time to provide an update on the state of the major index from a charting perspective. On August 8th 2014, I wrote about the S&P 500 E-Mini. That was some time ago, but several points are worth noting and one of the targets is still in play. The highlights of that post were: A correction was occurring 2 targets

Bounce or More? A Look At Where The SPX Rally Headed

In my last comment about the S&P 500, I argued that as long as a demand zone at 1986-1953 held the stock market would stay on course toward higher highs. That area of technical support failed and SPX sold off sharply; 1986-1953 now represents technical resistance. After the recent decline, it’s time to reassess. On Wednesday SPX put in a substantial bullish hammer candlestick (small real body, longer lower shadow

Small Cap Outperformance: Pointing to a Market Bottom?

One positive mentioned plenty in the market this week is small cap outperformance. One might suggest that we are at a sign of a bottom because of it. Well, that may be a farce. Let’s take a look, starting with the Russell 2000. The Russell 2000 iShares ETF (IWM) has broken a major 1 year topping pattern, pushing below 2014’s year-to-date support in February and May near 107. It’s unorthodox, but

Investors: Was Last Month’s Doji Star A Warning Sign?

Did the Dow Jones Industrial Average (DJIA) create a “Doji Star” topping pattern last month? Possible! Doji Star patterns (which look like a + sign on a chart) can take place at key reversal points (i.e. highs & lows). The chart below highlights that a Monthly Dow Jones Doji Star took place in October of 2007, which ended up marking the high that year. Did the Dow Jones create a