Watch those flags
Hi everyone !
I don’t pay attention to a lot of chart patterns, but flags are one of my favorites.
This was a big bear flag on NQ. The target was hit at 5612.75 which is 175.5 points from first resistance.
Hi everyone !
I don’t pay attention to a lot of chart patterns, but flags are one of my favorites.
This was a big bear flag on NQ. The target was hit at 5612.75 which is 175.5 points from first resistance.
I tell every new student this, “If you give 10 people a chart and ask them to draw Fibonacci levels on it, you’ll get 11 different draws.”
If you draw fibs correctly, you get highly accurate entry and exit levels; case in point below.
NASDAQ E-Mini Futures – 1-hour chart
Thanks for reading and always use a stop !
Dave
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:
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
NASDAQ Composite – 5 Year Weekly Chart
Standard & Poor’s 500 Index – 5 Year Weekly Chart
Russell 2000 Index – 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:
Dow Jones Industrial Average – 5 year, weekly chart
NASDAQ Composite – 5 year, weekly chart
Standard & Poor’s 500 Index – 5 year, weekly chart
Russell 2000 Index – 5 year, weekly chart
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
Greece couldn’t do it. Poor company earnings along with lower forward guidance couldn’t do it. Not even strong hints of a September rate hike by the Federal Reserve!
A technical market correction in the stock market is typically referred to as a drop of 10 percent from the highs.
It took a slow down in the world’s number two economy, China, to force this stubbornly bull market into a market correction.
Let’s take a look at the 4 major indexes to see where we are after Friday’s gouge of the Dow Jones Industrial Average (DJIA) where it gave up -530 points.
Three indexes have hit their 10% market correction level with the Standard and Poor’s 500 being shy of the mark. But all four will likely be in correction land when the markets open Monday – the futures market looks very heavy.
Notes are on the charts below. Click charts to enlarge.
Dow Jones Industrial Average – 1 year, daily chart
NASDAQ Composite – 1 year, daily chart
Standard and Poor’s 500 Index – 1 year, daily chart
Russell 2000 Index – 1 year, daily chart
Thanks for reading and always use a stop loss order.
Dave
This post originally appeared on See It Market
Below are different time frames with long and short term targets, support & resistance levels.
For a longer term target and support levels, I’ll start with a 3 year, weekly. Keep in mind there’s a large spread between first support of 87.85 and the target of 126.92. To compensate, I’ll drill down to shorter time frames.
QQQ – 3 year, weekly chart
To tighten the spread up, let’s drill down to a 1 year, daily chart. This gives us a target of 120.09 and first support at 102.32.
QQQ – 1 year, daily chart
Staying with a daily chart, let’s tighten the draw up a bit and continue to tighten the support to target spread. In the 1 month, daily chart below, you’ll see there is a current downside target of 109.23 with first resistance at 111.48. The daily candle on Friday, August 14th was able to close above the upper downtrend line.
From here, you’ll want to watch for a push through 111.48 and 111.83, which will create an upside target. If price can’t push thru these levels, support will be at 109.23.
QQQ – 1 month, daily chart
To trade this on an intraday level, I would drill down to a minimum of a 4 hour time frame.
Thanks for reading.
Dave
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:
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
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 Clauseâ€Â 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:
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
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
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
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
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).
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
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
In the 1 year chart below, you’ll see the S&P 500Â 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
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
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.
Since Q1 2009 the stock market has, to say the least, been on an absolute rip higher! Will this continue into 2015? Personally, I think there’s more upside to this market, but before we take a look at charts, let’s look at some astonishing performance numbers. From the 2009 lows to the current highs, the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT) have advanced as follows:
Yeah, that’s what I said also, WOW!
Now we’re going to walk through eight charts – a 10 year and a 1 year for each of the aforementioned stock market indices – looking for clues if this upside move will be sustained into 2015.
Dow Jones Industrial Average 10 Year, Weekly chart
In the 1 Year chart below, you’ll see the Dow is at a very crucial point of either breaking out or being rejected near the 2014 high.
Dow Jones Industrial Average 1 Year, Daily chart
Now let’s turn our attention to the NASDAQ and let the charts do the talking.
NASDAQ Composite 10 Year, Weekly chart
In the 1 year chart below, you’ll see the NASDAQ, like the Dow, is at a very crucial point of either breaking out or being rejected near the 2014 high.
NASDAQ Composite 1 Year Chart
Now let’s take a look at the S&P 500 Index.
Standard and Poor’s 500 Index 10 Year, Weekly chart
And once again, in the 1 year chart below, like the Dow and NASDAQ,  you can see the S&P is at a very crucial point of either breaking out or being rejected near the 2014 high.
Standard and Poor’s 500 Index 1 Year, Daily chart
Lastly, let’s look at the small caps index, The Russell 2000.
Russell 2000 Index 10 Year, Weekly chart
No surprises here either. In the 1 year chart below, you can see the Russell is at a very crucial point of either breaking out or being rejected near the 2014 high.
Russell 2000 Index 1 Year, daily chart
I wouldn’t be overly concerned with the price action of any of the above major stock market indices the rest of this week but on January 5th, 2015 keep a keen eye on these “make or break†levels as volume returns and the “Santa Clause†period winds down.
Trade safe!
This post originally appeared on See It Market