The market has been bullish going into the end of May. On Friday, though, the range narrowed as new highs were made. You could see the narrowness of the range by Friday’s intraday trading. It was difficult to trade on Friday. I see no reason for the market to have a big reaction at this time. As the market has moved up, supply has not shown its hand. Although volume has … [Read more...]
Market Falls
The US Stock market as measured by the S&P 500 e-Mini futures fell after weakness appeared at the recent highs. You can learn about the recent weakness and how it was detected from the last two blog posts discussing comparative weakness in the main US markets and the clear evidence of selling in recent days, among other signs of weakness. We are now probably a bit … [Read more...]
Weakness Appears
Last Monday, I posted that the Dow was lagging the other markets and was comparatively weak. This often flags a trend change, though it can take a short while to unfold. I mentioned to watch for weakness in the Nasdaq, looking for the Naz to break support. Well, that didn't happen, but on Friday, the Naz failed to make a new high along with the other markets (see red … [Read more...]
Rally Dying?
Or is it just a pause? As we await another winter nor'easter here in southern New England we are trying to stay warm and figure out what the likely next move of the market will be and how much snow we will get. The weather seems easier. It's been very cold here lately. I awoke this morning to one degree above zero (that's -17.22 Celsius). It's what we call pretty nippy. … [Read more...]
The Damage
We've been discussing the likelihood of a significant pullback in Deep Practice for the past several weeks. The monthly chart of the S&P cash market shows an overbought position in the trend channel. Because it is occurring on the monthly chart, the odds of a significant move becomes more likely. The market sell-off that began last Thursday is the beginning of the monthly … [Read more...]
