S&Ps UpThrust
The US Stock Market as represented by the S&P e-Mini futures, had a trend day down today. We could see evidence of mounting supply over the past few weeks, and the most recent rally to last month’s high was on receding volume. We had an UpThrust today. Now, the question is: will this take us down?
We did have some increase in volume compared to last week’s rally days, but it wasn’t heavy.
The market can work its way into an absorption picture here by holding its gains and not reacting much lower. The key level will be a penetration of and close below 1570. If this occurs on good volume, then odds will favor a larger reaction.
Crude Oil
Crude had a good sell off today, as well. Oil’s selling occurred on strong downside volume (compare this with the S&Ps). We could see the weakness mount in CL over the last two days. The rally on Friday (A) took the market to new highs, but the volume was light. Yesterday (B), volume picked up but no further upside progress was made. Selling was capping the market.
Chart Reading Challenge Free Webinar
On May 21, I’ll be doing a free webinar on chart reading via price bars and volume. This one will be fun. We will send you a series of charts before the webinar for you to analyze. We will decide whether to buy, sell, or stand aside based on the chart action. It is a way to test your ability of reading the chart. In the webinar, I will go into each chart in detail highlighting the supply or demand and the logic for buying, selling or being patient. We will cover currencies, the S&Ps, a stock, and a commodity or two, and we will look at varying time frames from monthly all the way down to intraday tick charts — something for everyone and everyone will learn something of value.
More details and registration here: Chart Reading Challenge Free Webinar
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