For several months the focus has been on when the U.S – FOMC will cut short -term interest rates. In the meantime, rates/yields have been rising on long term – 5-to-30-year U.S. Treasury securities. The monthly 5 – year Treasury yield (FVX) chart courtesy of Trading View shows what’s been happening. After rising for moreContinue reading “Watch the U.S. Treasury 5 – Year Yield”
Category Archives: Momentum
Russell 2000 – Clear Elliott Wave Pattern
The Russell 2000 (RUT) Elliott wave count from 03/28/24 to 04/24/24 implies more downside action. The one – hour RUT chart courtesy of Trading View shows what’s been happening. The RUT decline from 03/28/24 to 04/19/24 was an extended Elliott Impulse wave. The subsequent rally was a three – wave correction topping almost exactly atContinue reading “Russell 2000 – Clear Elliott Wave Pattern”
Using VIX to Find S&P 500 Bottoms
Upward spikes of the CBOE Volatility Index (VIX) usually correspond to significant S&P 500 (SPX) bottoms. The big question is how large of a VIX upward spike? The size of a VIX spike varies depending on the nature of the SPX decline. For the current SPX decline that began on 03/28/24 the Relative Strength IndexContinue reading “Using VIX to Find S&P 500 Bottoms”
Nasdaq Adds Fuel to the Bearish Fire
From October 2022 to March 2024 the Nasdaq Composite (IXIC) lead the way, gaining 31% vs S&P 500 (SPX) up 28% and Dow Jones Industrial Average (DJI) up 22%. On 04/19/24 IXIC declined 2.05% vs. SPX down .88%. The DJI was up .56. The IXIC dramatic drop on 04/19/24 implies more downside action for U.S.Continue reading “Nasdaq Adds Fuel to the Bearish Fire”
S&P 500 and Russell 2000 Momentum
Weekly momentum indicators imply more downside action for the S&P 500 (SPX) and the Russell 2000 (RUT). The weekly SPX chart courtesy of BigCharts.com illustrates three momentum oscillators. The lower line for weekly Slow Stochastic has only reached 30%. The oversold zone begins at 20%. Weekly RSI is in the upper part of the neutralContinue reading “S&P 500 and Russell 2000 Momentum”
S&P 500 and Russell 2000 – Important Support Zones
The Volume Profile method identifies potential support for the S&P 500 and the Russell 2000. Volume profile places volume on a vertical axis and identifies support/resistances areas. The wideset volume cluster is called Point of Control (POC) which represents the strongest potential support/resistance. Price is drawn to or is repelled by POC. The first dailyContinue reading “S&P 500 and Russell 2000 – Important Support Zones”
Nasdaq Composite Bearish Breakthrough
The 04/15/24 Nasdaq Composite (IXIC) break below two important support levels opens the door for a move down to the January 2024 bottom. This sites 04/13/24 blog illustrated that the IXIC may have completed a bullish Horizontal Triangle and the IXIC could make a new all-time high. The IXIC gapped up on the 04/15/24 openContinue reading “Nasdaq Composite Bearish Breakthrough”
Nasdaq Composite Could Make a New All-Time High – Part Two
The Nasdaq Composite (IXIC) struggles to go down. On 04/12/24 the S&P 500, Dow Jones Industrial Average, and the Russell 2000 made new decline lows. The IXIC not only held above its 04/04/24 bottom, but it also failed to go below the bottom made on 04/10/24. The 30-minute IXIC chart courtesy of Trading View illustratesContinue reading “Nasdaq Composite Could Make a New All-Time High – Part Two”
Russell 2000 – Leading the Way Down
The Russell 2000 (RUT) small cap stock index has declined 5.5% since its 03/28/24 peak. From its 03/21/24 top the Dow Jones Industrial Average has fallen close to 4%. The Nasdaq Composite from 03/21/24 to 04/10/24 is down 2.3%. The S&P 500 from its 03/28/24 top has declined 2.4%. The daily RUT chart courtesy ofContinue reading “Russell 2000 – Leading the Way Down”
Two Characteristics of a High Probability Winning Trade
One market currently has two factors that strongly imply at least a one-month bull run. That market is Soybeans. Most of the information about the current Soybean bullish set up comes from a recent interview with the legendary trader, author, and market analyst Larry Williams. The weekly continuous Soybean chart courtesy of Barchart.com illustrates theContinue reading “Two Characteristics of a High Probability Winning Trade”
Four Dimension Trading 