Major Indices

Is The S&P 500 Forming A Bearish Rising Wedge Pattern?

Technical analysis of stocks and other financial markets is admittedly a “fuzzy” craft. Identifying technical patterns is not that dissimilar from gazing at the clouds: depending on personal biases and how our brains are wired, different people can (and will) see different patterns. Additionally, even “textbook” patterns can fail, often in direct proportion to how visible they are and how much attention they receive. Finally, it doesn’t help that the

Is The NYSE Composite Index Topping? Watch That Divergence

The markets have been choppy for several weeks and this has made it difficult for traders and investors to figure out the market’s next move. But the NYSE Composite Index (NYA) may be a market ‘tell’… today or in the days ahead. While the NYSE Composite Index has made new highs, the other major indices (Dow Jones and S&P 500) have not. This is a divergence to keep an eye

S&P 500 Update: Wedge Pattern Keeping Market Bulls In Check

The past several weeks have been an adventure for active investors. To be honest, I’ve been itching to be more active, but my experience has told me that sometimes less is more. Earlier this week I highlighted a major S&P 500 Fibonacci extension level that resides just overhead around 2140. This area coupled with some other near-term fibs makes 2130-2160 interesting. But when and how we get there is another

S&P 500 Within Reach Of Major Fibonacci Level

It’s inevitable, every time investors start to “look” higher, the market reverses and punishes them. This has happened several times in 2015 as the markets have been volatile and choppy. But with the stock market back near all time highs, a major S&P 500 Fibonacci target comes into play again. Back in late February, I posted about the 1.618 Fibonacci extension from the ’09 lows back above the ’07 highs.

Why The SP 500 May Be Targeting Higher Prices Yet

The current rally on the S&P 500 may be targeting higher prices yet. Why do I say that? Because that’s what my Fibonacci method is telling me. Let’s look at some charts. Below is a longer term, daily chart of the S&P 500 E-Mini contract (ES) I’ve used for acquiring longer term targets starting back in 2010. All the upside targets have been hit and closed except for the current

S&P 500 Support Levels: Why 2040 and 1970 Are Important

The S&P 500 (SPX) has been in consolidation mode since early March, forming a wedge pattern. Since the longer-term trend is higher, a breakout to the upside seems logical. However, we need confirmation and could continue to see more distribution. For that reason, I want to highlight some S&P 500 support levels to keep on your radar. If the price action breaks below the lower trend line of the wedge in the

S&P 500 Update: Is The Market Running To Stand Still?

Over the past several months, the S&P 500 has managed to climb higher while momentum is slowing and volatility is re-emerging. As we’ve noted several times, this is a sign of a market in flux. Call it choppy, call it indecisive, or call it uncertain, it really doesn’t matter. The bottom line is that price is the final arbiter. And thus far, the bulls have miraculously held there own. But the storm

Dow Jones Industrials Testing Confluence Of Price Resistance

Sometimes stepping back the day to day price movements can help us get a better perspective on the markets. When we look at a chart of the Dow Jones Industrial Average from 1920 to present, we can see each of the bull and bear market cycles. But we can also see some longer term support and resistance trend lines. And right now, the Dow Jones is bumping up against a long-term resistance

Dow Theory Non Confirmation Signal: Spring 2012 Repeat?

Dow theory can be a valuable tool to have in your toolkit. Especially if you keep the confirmation and non-confirmation signals in perspective of their given timeframe. On March 2nd, when the markets were near peak levels, I posted a research note on Dow Theory highlighting the weakness in the Dow Jones Transportation Index (DJT). That wasn’t a call for a market top, but rather a call for some caution