Chart Reading

Last week the stock market did an amazing job recovering from bad news, terrorist threats, and the Russian/Turkey pilot incident. Rallying on bad news is bullish. Being within striking distance of all time high prices is bullish for $SPY. For the past seven trading days the 10 day EMA has acted as end of day […]

  Bullish MACD Crossover 56.92 RSI is bullish Price break above the 10 day EMA Price break above the 50 day SMA Strong break on 2nd highest volume in eleven days Bullish breakout of the symmetric triangle Next breakout the 200 day SMA?

$BABA broke the downward trend line. It broke over the 10-day EMA. It broke over the 200-day SMA. The 50-day SMA has begun to slope upwards. The 60 RSI is bullish and gives it room to climb higher. It rallied as the rest of the market was down Monday. $BABA continues to go up on

Recently the top 10 stocks in the S&P 500 were +13.9%. The other 490 were -5.8%. This is the largest spread since the late 1990s. This market continues to lack breadth. The leaders control the direction. In swing trading markets, momentum signals fail for the upside and downside. On Monday the bulls stepped back into

The stock market index ETFs remain flat on the year, $SPY down -1.46% , $DIA down -2.96%, $IWM down -4.64%, and $QQQ +6.38%. This leaves buy and holders, trend follower’s equity positions, and investors down on the year after taking on all the risk exposure. When stocks as an asset class are under accumulation, the indexes

  2015 index ETF returns are at $SPY +2.19% $DIA +0.71% $IWM -0.33% and $QQQ gained +11.18% thanks primarily to $FB $AMZN $AAPL $NFLX and $GOOGL year to date. This market has been absent a long term trend in 2015 and until late August it did not even swing widely in price. The stock market

$QQQ and $DIA are both over their 200 day SMAs but also over the 70 RSIs the risk reward is in the favor of short sellers here. The charts look more like the top of a downtrend than the beginning of a new uptrend at this point in time. Buying dips back to the 200

With $SPY down -1.1% year to date, 2015 continues to be a flat year. I don’t understand the continuous perma-bull celebrations on the rally to nowhere. Perma-bulls and buy and hold investors have likely made few returns this year. The 70 RSI is the near term overbought resistance on the $SPY chart. The 200 day

$SPY has closed above the 5 day EMA for six straight trading days indicating a strong short term uptrend and momentum. This could provide short term support. Bullish 5 day / 50 day EMA crossover. Bullish MACD indicating momentum. Five straight days of higher highs and higher lows. $QQQ already over the 200 day and