Tag Archives for " technical analysis "

0 Still Overbought

On Thursday the DJIA and S&P 500 (SPX) put in reversal bars. We got the follow-thru on Friday with the DJIA down nearly 300 points and the SPX down 32 points…the biggest down day since Sept. 1st. Now we have a similar reversal bar for the week.

The market had reached an overbought extreme with the 3 week counter-trend move. Based on Elliott Wave count, Put/Call extremes and other momentum indicators there is still more selling to come.

I go into all of this in the detailed Weekend Market Analysis Video below. I also review the weekly charts of American Express (AXP), Bank of America (BAC) and Goldman Sachs (GS). Continue reading

0 The Fed Spoke Loud and Clear

The Federal Reserve didn’t raise interest rates today because of concern about the global economic situation. So the Fed Funds rate has been essentially flat at about .14% for almost 7 years now. By not raising rates today, the Fed spoke loud and clear. It says volumes about what is really going on.

The market’s reaction to China and other things has the Fed’s attention. But what Chairwoman Yellen also talked about was the lowering of the inflation curve out into the future. They are not seeing inflation coming back and there is a real concern about deflation getting a strong toehold globally.

The Fed meets again in October and December so there still is an opportunity to raise rates then. The DJIA was up 193 points at its intra-day high and closed down 65 points at 16,674.70. In the Weekday Market Wrap video below I look at the market action and CAT, WYNN, EXPE. Continue reading

0 Riding the Wave…87 in 3

In this free video I walk you through a trade idea on Solar City. Riding the wave for a nice profit in 3 days.

0 Fed Meeting Rally

Well, the much talked about Fed meeting is underway and concludes with a decision on interest rates tomorrow at 1pm CT followed by Fed Chairman Yellen’s news conference. I still believe we are correcting the big move down. The market is now as overbought as it was on July 16. I talk about this in the video below. Continue reading

0 A Little Pressure Release

The market was getting very compressed, as I discussed yesterday. Today some of that pressure got released. But I don’t think this a lot for bulls to celebrate.

Patterns haven’t changed. The market is still fighting some strong downward momentum. And the S&P 500 is in a solid resistance zone.

Also China’s Shanghai Composite Index took another hit. I go into all this in the video below where I also look at FEYE and TWTR. Continue reading