Major Indices

Triangle Pattern Tells Investors To Remain Cautious On Stocks

The good news is that price volatility on the S&P 500 has calmed down somewhat and that the index remains above the recent lows. The bad news is that prices remain under a mountain of overhead supply having run out of gas close to the underside of the top. The current boundaries…

5 Sector Charts To Watch During The Market Correction

It’s been a wild ride to end the summer months. In my June market update, I noted that the stock market was showing signs that a new cycle was forming as the Cyclicals sector was making its way back onto our radars. Cyclicals tend to lead in “late bear markets”…

Two Stock Market Indicators That Highlight ‘Selling’ Environment

When looking at the market, moving averages are often used to help define trends and locate levels of possible support and resistance. Momentum indicators are also used to evaluate the ‘health’ of market trends and determine whether they are sustainable. And both of these stock market indicators bear importance for…

Market Risks Rise As NYSE Composite Breaks Support

The S&P 500 is now down around 7 percent on the year, while the NYSE Composite Index is down around 9 percent year-to-date. Is the very long-term bull market still in play? Yes it is! But that doesn’t mean that there aren’t market risks over the short-term. The chart below…

Are The Financial Markets Turning Into Mr. Toad’s Wild Ride?

Folks, if you’re reading this blog it’s assumed you have some interest in the financial markets and, to a certain extent, the art of “technical analysis.” In order to lighten up the technical aspects of looking at a chart I’ve included a couple of pictures to describe my personal feeling…

Macro Market Outlook: Crude Oil Jumps; Stocks Not Out Of Woods

No doubt, last Monday’s open marked important lows across the globe. Maybe we won’t see them for awhile. But downside momentum for stocks has been strong and we haven’t even broken meaningful breakdown pivot levels yet. Let’s not get ahead of ourselves with ‘but nobody is expecting a V bottom’…

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…

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…