For the week ending October 30th, I wrote a post on the state of the 4 major US stock market indices. This post included the Dow Jones Industrial Average, NASDAQ Composite, S&P 500, and the Russell 2000, as all were at or near important resistance levels.

These levels would provide clues as to whether the bullish sentiment was still intact or if the market was becoming exhausted.

Now, 5 trading sessions later, let’s take a look at what the market told us. Here’s a rundown of the major stock market indices:

• The DJIA added +1.39% and has closed above trend line resistance that began in 2011.
• The NASDAQ added +1.84% and has closed 5 consecutive weekly candles above trend line resistance that began in 2012.
• The S&P 500 added +0.95% and has closed 3 consecutive weekly candles above trend line resistance that began in 2011.
• The Russell 2000 added +3.26% and has closed above trend line resistance that began in 2011.

That said, in the following 4 charts, you’ll see where all 4 stock market indices are entering into a tight zone where there is likely to be a tug-of-war between the bulls and bears.

Dow Jones Industrial Average – 5 Year Weekly Chart

Dow – 5 year, weekly chart

NASDAQ Composite – 5 Year Weekly Chart

NASDAQ – 5 year, weekly chart

Standard & Poor’s 500 Index – 5 Year Weekly Chart

S&P 500 – 5 year, weekly chart

Russell 2000 Index – 5 Year Weekly Chart

Russell 2000 – 5 year, weekly chart

In my opinion, swing and/or position traders should watch price very closely going into the Christmas buying season especially if and when they reach the current highs that can be seen on the charts (i.e. watch for breakouts). The S&P 500 and the NASDAQ are particularly close to those overhead levels now.

It’s worth noting there are 843 companies reporting earnings the week of November 9th.

Thanks for reading and remember to always use a stop.

Dave

This post originally appeared on See It Market

All the major U.S. stock market indices are at important levels right now. From the Dow Jones Industrial Average to the NASDAQ to the S&P 500 to the Russell 2000, the setups may vary, but the price levels are important.

In the following 4 charts of the major stock market indices, you’ll see long term trend lines that have either been cleared or price is nearing now.

Here’s a high level overview of what the charts are saying and what levels investors should be watching:

• The Dow is pushing against it now.
• The NASDAQ has cleared and held above the trend line for 1 month now.
• The S&P 500 is currently sitting on the trend line.
• The Russell 2000 is approximately 30 points under the trend line.
• Above the trend line are highs that will need to be broken to keep the bull market intact.

Dow Jones Industrial Average – 5 year, weekly chart

DJIA – 5 year, weekly

NASDAQ Composite – 5 year, weekly chart

NASDAQ – 5 year, weekly

Standard & Poor’s 500 Index – 5 year, weekly chart

S&P 500 – 5 year, weekly

Russell 2000 Index – 5 year, weekly chart

Russell 2000 – 5 year, weekly

Watch these levels closely; they will yield clues as to whether the bull market has more upside or is becoming exhausted.

Thanks for reading and always use a stop.

Dave

This post originally appeared on See It Market

Unless you’ve been hiding out in a cave or on a distant planet, you know the stock market has been in a bull phase since early 2009. To add perspective, the S&P has tacked on a whopping +217.87% from March 2009 to the February 2015 high ! It would be natural for one to think the bull ride may be coming to an end. But is it ? Let’s briefly touch on some past posts/charts and see what the numbers said then versus now. I’ll give you links back to previous articles for reference.

First, to get a general view of the market as a whole, refer back to this February 2015 post. In that post I highlighted the following:

• A correction in September-October of 2014 of (9.83%). That’s close enough to (10%) for me.
• Two pullbacks of (5.14%) and (5.38%).
• The average of the past seven pullbacks was (4.72 %).

The shallowness of the pullbacks indicates strength to me, i.e. The bull ain’t done !

The following chart is identical to the one in the February post other than it shows the new high of 2119.59 which was put in this week. (February 23rd – 27th)

S&P 500 Corrections and Pullbacks – 10 Year Weekly Chart

S&P 500 10 year Weekly chart

In this December 2014 post, I posted eight charts, 2 each of the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). In each series, I used a ten year weekly to show the breakout above the 2007 highs and a one year daily showing current resistance levels or what I deemed  “make or break” levels as volume returned and the “Santa Clause” rally began to wind down.

Since the time of that post, each indice has indeed made new highs; the Dow +0.77%, the NASDAQ +3.61%, the S&P +1.24% and the Russell 2000 +1.54%. These are gains to the current highs , not current price.

In my January 2015 post, I highlighted where a (10%) correction would be from the current highs. None of the indices came close to a “correction,” but the pullbacks were as follows:

• Dow Jones Industrial Average pullback = (4.75%)
• NASDAQ Composite pullback = (5.23%)
• S&P 500 Index pullback = (5.03%)
• Russell 2000 Index pullback = (5.74%)
  

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Now that we find ourselves in the first trading week of March 2015, let’s see if the bull is still raging or is there a pack of bears hiding up ahead.

Starting with the Dow Jones Industrial Average (DJIA), you’ll see in the chart below two areas of major resistance; one at 17991.19 and one at 18103.45. Price has cleared both levels and they will now be support.

Dow Jones Industrial Average – 1 Year Daily chart

Dow Jones Industrial Average – 1 Year Daily chart

Next you’ll see the NASDAQ only has one level that I consider important in the context of this post, 4814.95.

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 Year Chart

Moving on to the broader view of the market, the S&P 500 gives us two levels of resistance that have been cleared and are now support at 2079.47 and 2093.55.

S&P 500 Index – 1 Year Daily chart

S&P 500 Index – 1 Year Daily chart

And lastly, the small cap index, the Russell 2000 also gives us two levels of resistance which have been cleared and are now support at 1213.55 and 1221.44.

Russell 2000 Index – 1 Year Daily Chart

Russell 2000 Index – 1 Year Daily Chart

It is worth noting that each indice does have open gaps from February that are below the aforementioned support levels. It is not at all unusual to see price come back to close a gap and then push back above the previous support.

Thanks for reading and always use a stop loss order.

Dave

This originally posted on See It Market

It’s been a rocky ride thus far for the major stock market indices in 2015. Just 3 weeks ago I wrote about the resistance levels for the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). I purposely did that post at that particular time because all 4 major stock market indices were at what I deemed “make or break” levels. Simply put, they were all at resistance levels that would either push them down or they would break out above and continue upward in this raging bull market that started in early 2009.

At that time, using my Fibonacci method, these were the resistance levels I was watching (again, those levels can be seen in my post from December 31st).

• DJIA   Res = 17991.19.       High = 18103.45
• COMPQ Res = 4810.86.   High = 4814.95
• SPX Res = 2079.47.            High = 2093.55
• RUT Res = 1213.55.            High = 1220.81

Now, let’s check back in on the four major market indices and see if they broke out or pulled back at the resistance levels, starting with the Dow Jones Industrial Average (DJIA).

In the 1 year chart below, you’ll see that the Dow has not made a new high and has pulled back (4.75%). A technical correction of (10%) would be at 16293.

Dow Jones Industrial Average 1 Year, Daily chart

Dow 1 year, daily chart.

In the 1 year chart below, you’ll see the NASDAQ has not made a new high and has pulled back (5.23%). A technical correction of (10%) would be at 4333.45.

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 year chart.

In the 1 year chart below, you’ll see the S&P 500 has not made a new high and has pulled back (5.03%). A technical correction of (10%) would be at 1883.99.

S&P 500 Index 1 Year, Daily chart

S&P 500 1 year, daily chart.

And last, but certainly not least, the Russell 2000 has made a new high of 1221.44, a minute increase of only +0.05% above the previous high.  A technical correction of (10%) would be at 1099.2.

Russell 2000 Index 1 Year, Daily Chart

Russell 2000 1 year, daily chart.

If the market continues to pull back, watch for support at these (10%) correction levels as they will be high probability support numbers. And by the same token, if the market starts a march forward, the previous resistance levels will apply as well.

Thanks for reading and always use a stop !

Dave

This post originally appeared on See It Market.