Hello MarketClub members everywhere. It's Friday and a lot is going on in the markets. I believe that the sharp rally in the indices will fizzle out in the next five days and they will move into a trading range before heading lower.
The reason I say that is because all three major indices are in what I call "thin air". What that means is that they are all above their 50% Fibonacci retracement levels and close to their 61.8% major resistance areas.
Hello MarketClub members everywhere, it certainly was a "Super Tuesday" in many respects with the markets having their best moves to the upside in the quite some time. The weekly Trade Triangles all turned green in February indicating a sidelines position in all the major indices.
Now for some of you who like to swing trade, the upside objectives are pretty clear based on the technical formations that each of the major indices have created. The DOW (INDEX:DJI) has formed a double bottom and a pivot point that has been broken to the upside. If you're not familiar with this formation, we have a little lesson for you right here. The S&P 500 (CME:SP500) index also has this same formation. Continue reading "How High Can The Indices Go?"→
Hello MarketClub members everywhere! As the month of February rapidly comes to an end in just three trading days, I thought it would be interesting to look at where the markets closed at the end of January, which as you know was a very volatile month.
To put it simply, sometimes being on the sidelines in a cash position can be beneficial to your portfolio. There are times in the market when trends are very clear, whether it be up or down. At the moment when you look at the DOW Index, the Trade Triangle technology is indicating that you should be on the sidelines as the major trend remains down while the intermediate-term trend is positive. Over at the NASDAQ and the S&P 500, you should still be negative on those indices, providing the 4,636.93 and 1947.20 levels are not breached to the upside.
Today could be a very interesting day, we could see the recent upward momentum reverse back down and witness a pullback in the major indices and many stocks that have recently rallied against their longer-term negative trends.