The Nasdaq Composite has been the weakest of the main US stock indices, on 05/12/22 it reached an extremely oversold condition. The Nasdaq weekly chart courtesy of BigCharts.com- symbol (COMP) illustrates the situation. Slow Stochastic is at the lowest level in five years. The Nasdaq hourly Point & Figure chart courtesy of Trading View –Continue reading “Nasdaq is Extremely Oversold”
Category Archives: Momentum
Fibonacci Price and Time Connections – Part – Two
The 05/08/22 blog “Fibonacci Price and Time Connections” noted broad leeway for support on the S&P 500 (SPX) could be between 4035 and 3985. Today 05/09/22 the SPX low was at 3975.48. Leeway is not an exact science. The SPX 2010 decline was the source for projecting a possible 2022 support area. In 2010 theContinue reading “Fibonacci Price and Time Connections – Part – Two”
Nasdaq Composite Momentum 05/06/22
The Nasdaq Composite (IXIC) made its all-time high in November 2021 more than a month before the other two main US stock indices, S&P 500 (SPX) and Dow Jones Industrial Average (DJI). Since then, it has been the weakest index – down 26% from its November 2021 top. The 05/02/22 blog “US Stock Market MomentumContinue reading “Nasdaq Composite Momentum 05/06/22”
US Stocks Up on Bearish News
Today 05/04/22 the FOMC again raised interest rates, and US stocks had a big rally. The daily S&P 500 (SPX) chart courtesy of Trading View illustrates the action. Daily RSI after recording a bullish divergence had a bullish cross over of its moving average line. This new piece of bullish evidence adds to the considerableContinue reading “US Stocks Up on Bearish News”
US Stock Market Momentum and Sentiment – Part Two – 05-02-22
Today 05/02/22 the S&P 500 (SPX) went below its 02/24/22 bottom eliminating the bullish divergence of only the Nasdaq Composite (IXIC) making new decline lows. While eliminating the bullish divergence there are others made by the new SPX low. The combined daily SPX and VIX chart courtesy of Trading View illustrates the bullish divergences. TheContinue reading “US Stock Market Momentum and Sentiment – Part Two – 05-02-22”
US Stock Market Momentum and Sentiment 04-29-22
On 04/29/22 the US Stock market represented by the three main stock indices; S&P 500 (SPX), Dow Jones Industrial Average (DJI), and Nasdaq Composite (IXIC) wiped out a powerful rally made on 04/28/22. Could this be the start of a crash? Perhaps, anything is possible. However, a review of momentum and sentiment readings for USContinue reading “US Stock Market Momentum and Sentiment 04-29-22 “
Examination of the Weakest Main US Stock Index
From 04/21/22 to 04/27/22 the main US stock indices, Dow Jones Industrial Average (DJI), Nasdaq Composite (IXIC), and S&P 500 (SPX) had a powerful and sharp drops. Today 04/28/22 the US Gross domestic product report indicated a 1.4% contraction in the first quarter of 2022. All three main US stock indices rallied strongly on theContinue reading “Examination of the Weakest Main US Stock Index”
Sharp Stock Reversal – Part – Three
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”
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”
Four Dimension Trading 