Objectivity is the most important trait that traders must have. Traders objectively analyze the balance of evidence before acting. If the evidence indicates a market/stock could rise – it does rally but is subsequently quickly reversed, then conditions have change. If conditions changed, then you must objectively view the new evidence produced from the change.Continue reading “Sharp Stock Reversal – Part – Three”
Category Archives: Momentum
Bullish Momentum Signals – 04-14-22
The 04/12/22 blog “S&P 500 Decline is Losing Momentum” illustrated that the S&P 500 (SPX) 30 – minute MACD and RSI indicators were showing bullish divergences. On 04/14/22 internal momentum indicators were also showing bullish divergences. The daily NYSE – Advance – Decline Issues ($NYAD) courtesy of StockCharts.com illustrates the NYSE Advance/Decline line. On 04/11/22Continue reading “Bullish Momentum Signals – 04-14-22”
S&P 500 Decline is Losing Momentum
The 30-minute S&P 500 (SPX) chart courtesy of Trading View illustrates the recent action. At the 04/12/22 low there were double bullish divergences on the 30- minute MACD and RSI. The overall drop since the 03/29/22 high is choppy and characteristic of Elliott wave – Double Zigzag corrective patterns. The SPX Bullish Percent Index brokeContinue reading “S&P 500 Decline is Losing Momentum”
Three Paths For the S&P 500 04-11-22
Today 04/11/22 the S&P 500 (SPX) broke below important support at 4450 and opened the door for three possible Elliott wave counts. Two of the counts assume a new bear market is under development. One wave count assumes the SPX drop from 03/29/22 is a correction within an ongoing bull market. The first 30Continue reading “Three Paths For the S&P 500 04-11-22”
Rally into Resistance
On 04/07/22 at mid-day the S&P 500 (SPX) declined to 4450.30 just above the 04/06/22 low at 4450.04. The SPX – 15-minute chart courtesy of Trading View illustrates the action. The subsequent rally peaked at 4521.16 almost a bulls eye hit of the Fibonacci .382 retracement of the 03/29/22 to 04/06/22 decline. The exact .382Continue reading “Rally into Resistance”
Persistent Rally Continues
The 03/23/22 blog “Potential S&P 500 – Support Zones” noted that a shallow bottom could be made soon – perhaps in one or two trading days. As it turned out a bottom was already in place on 03/23/22 as the S&P 500 (SPX), the Nasdaq Composite and Dow Jones Industrial Average have subsequently made newContinue reading “Persistent Rally Continues”
Diverging Trendlines
The main characteristic of an Elliott wave – Ending Diagonal Triangle is it’s wedge shape between converging trendlines. The supposed S&P 500 (SPX) Ending Diagonal Triangle (EDT) from the 01/04/22 peak now has diverging trendlines. The daily SPX chart courtesy of Trading View illustrates the recent action. Could an Expanding – EDT be forming –Continue reading ” Diverging Trendlines”
Trendline Break Through
Today 03/17/22 the S&P 500 (SPX) continued to move above the trendline connecting the supposed wave “two” top – 02/09/22 with the supposed wave “four” top – 03/03/22 of a presumed Elliott wave Ending Diagonal Triangle from the all-time high on 01/04/22. The daily SPX chart courtesy of Trading View illustrates the declining trendlines. TheContinue reading ” Trendline Break Through”
Examination of US and German Stock Markets
After the 02/24/22 bottom US stocks appeared to be poised for a rapid move up, but after two days a trading range developed. Meanwhile, German stocks as measured by the DEU40 have continued to make new decline lows. Evidence from the DEU40 could be providing clues as to the near-term direction for the global stockContinue reading ” Examination of US and German Stock Markets”
Important US Stock Market Bottom Could be in Place – 02-24-22
The 02/24/22 dramatic reversal after a powerful decline may have created an important bottom for US stocks. The daily S&P 500 (SPX) chart courtesy of BigCharts.com illustrates several bullish signals. There were bullish divergences on the daily Slow Stochastic, RSI and MACD vs. the higher bottom made on 01/24/22. Slow Stochastic had a bullish linesContinue reading “Important US Stock Market Bottom Could be in Place – 02-24-22”
Four Dimension Trading 