Bulls defended our level and are trying to claw their way back. We are still favoring the downside and will seek triggers around the Minor Resistance area. Be patient on Monday. No Trigger, No Trade!
A very bullish bounce today in the indexes...you had to be quick to catch the move. We will watch the next couple of days to see if this is small bounce or a true reversal. Keep on your watch list and watch the outline levels.
The head and shoulders pattern is working well on the Russell. We are half way to the measured move objective. If you missed this trade then please revisit our past Russell posts and watch how the pattern played out. Patterns repeat and there will be many more.
INDEX:IUX Possible reversal in the Russell 2000 as a pin bar formed on support of Aug 2103 and resistance of May 2013. Next resistance and possible exits at 1040.00 and 1080.00. Reversal is invalidated when price breaks below last Fridays low. Good luck! Dave www.davetromp.net
The NASDAQ is starting to make a good bounce. We are still waiting for the Trigger Zone to see if we can get short. Be patient with this bounce.
Downside breakout today from a trendline dating back to lows of 2009. It's also under the 200 week moving average. More downside ahead. Note: This small-cap indicator is often seen as a leading indicator for the large-cap S&P 500.
We mentioned this pattern before (Just Saying...see below) and the neck line has broken. If this pattern plays out we could see a visit of the 2012 support area which falls in line with the measured move. It would be a monster move but...Just Saying. ;)
We are over sold down in this area and looking for a small bounce into resistance. We will look for a shorting opportunity at the watch zone. NO TRIGGER, NO TRADE!
We are over sold on the current down move. If you are short, it may be a good idea to tighten stops or cover positions. We are looking for for a short term bounce in the Indexes over the next two trading days...but only a short one.
According to the four main indicators I run on the indices, the Russell 2000 has entered a bear phase. I would expect a decline of about 20% to occur during 2016. Furthermore the 50day SMA is turning down after failing to re-take the 200day, and a head-and-shoulders is appearing. Check my blog for more.
If 4588 gives way on volume then 4475 will act as a magnet. Keep on the watch list.
Keep and eye on your weekly chart. If Santa can't find his rally cap then the neck line cometh
What a difference a day makes. Just when we were looking for a short (which we got) the very next the market recovered the previous days losses an then some. Was it news driven (Draghi or NFP) or is this a sign of major consolidation before a break out in the first part of January? Time will tell. However, you will need to be tactical for now...positions are...
The Nasdaq is breaking new high and the Russell and is not even close to new highs. We posted this weekly chart a week ago...is this a clue?
Tech is defying gravity. The Nasdaq broke new highs today while the Russell and S&P lag. The question begs...will the the other indexes catch up or drag the Nasdaq down? No shorting for us in these areas. We will see if we can get a break and close below the up channel (or green line around 4675)
What does this book tell us? Just saying! Time will tell.
We are watching the Russell in this area. It had a nice fake on the break but we think the Russell has not caught up yet. If she does then 1200 could be on the radar screens. If she breaks below the 1138 area then the indexes are in trouble. Keep on you watch list.
We still have a fairly nice down channel (not perfect but what is about TA). IFFFFF we are forming a 5 wave down start to a new major market then I believe most likely we have just completed wave 4 of 5. If so wave wave 4 is an irregular flat where the B wave is 1.27 x A which is not rare fib relationship. Wave 4 represents a .38 correction of waves 0-3. Often...