With such a strong rally on Thursday, I said on Thursday night that if the market could close at or above Thursday's close on Friday, it would be very bullish and odds would favor higher prices this week.  Well, that did not happen.  Instead of closing the week firm, Friday saw a reversal.  We closed well below Thursday's close and quite near Thursday's low.  A very poor … [Read more...]

In my posts this week, we have been anticipating each of the market's next moves in advance.  On Sunday night, I noted that the market was about to fall with a target zone around the 1350 level.  I noted that we were about to dip down to test last year's high (May 2011 high).  You can see that post by clicking here.   The market reached that zone.  On Tuesday night, I said that … [Read more...]

As I said in my last post (click here to see it), the market had good odds of reacting and coming back to retest last year's (May 2011) high.  All the signs we look for were there.  These are taught in detail in Chart Reading Mastery, and past students were noting these signs and anticipating the reaction.  As you can see on tonight's chart of the weekly and daily S&P 500 … [Read more...]

We have seen the US Stock market as represented by the S&P 500 correct back for the past few days in a shortened holiday week after it painted a new high on the first trading day of April.  The market is now in a support area where some buying had occurred earlier in mid- and late March. We see the potential of an Up Thrust on the daily chart along with three symmetrical … [Read more...]

I am a bit under the weather fighting off some vague illness, so I slept in this morning to miss this nice downdraft!  Oh well, no worries.  At least I am feeling better. Current Market A week ago, I noted supply was beginning to show itself on the longer term charts.  I suggested that traders watch the weekly chart for a poor close.  (You can see that post here.).  Last week's … [Read more...]