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Updates from market internals
The latest updates from market breadth and the percentage of bullish stocks are still bearish. In the big picture context, stocks are still in Major Pullback2. VIX futures contract M1 M2 M3 M4 are all in backwardation. This means that traders are very bearish about current scenarios in August, less so in September, less so in October and November. However, in the short-term stocks are fairly oversold as indicated by the CBOE equity put/call ratio. The rest of this article covers: Updates from market internals (more) Table of support and resistance levels Trade scenarios to plan for Register your email here for full access to all our nightly analysis, trading plans and intraday updates. No credit card. All free.
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Updates from market internals
All market internal indicators sent out a very bearish message today. Their patterns indicate there will be a lot more selling ahead. However, despite this underlying bearishness, don't underestimate the market's ability to stage a short-term rally that rises through multiple resistance levels. You may have noticed since August 5, we have had some sudden wild surges and drops, followed by prolonged consolidation in a particular price zone. This type of behavior is typical in a turbulent market, unlike the steady upward stair-stepping pattern of a calm up trend. These consolidation zones in the current turbulent market are where bulls and bears battle it out, until the winner emerges to take prices in a new direction. So rather than chasing prices up or down during the wild swings, we should wait for consolidation to take place, and look for signs of the early winner. That is a good time and place to enter our positions. Table of support and resistance levels The S/R table below show where the battles may occur tomorrow. ... The rest of this article covers: Table of support and resistance levels Trade scenarios to plan for Register your email here for full access to all our nightly analysis, trading plans and intraday updates. No credit card. All free. A strategically timed tweet just after open this morning helped the bulls win today’s battle and took prices up substantially higher. We projected yesterday that prices may rise into the price zone that spans the high and low of August 8. $SPX $NDX ended up rising very bullishly to reach the high of August 8 again. So let’s put all this in perspective.
Updates from market internals NYSE and Nasdaq Advance Decline cumulative lines rose up a bit today, but not with the same bullish magnitude that saw in price actions of $SPX $NDX $RUT. ... The rest of this article covers: Updates from market internals (more) What happens to the status of Major Pullback2? Table of support and resistance levels How to approach your trades Register your email here for full access to all our nightly analysis, trading plans and intraday updates. No credit card. All free. We posted intraday updates as of 1:24 PM EST.
Register your email here for full access to all our nightly trading plans and intraday updates. No credit card. All free. Major Pullback2 is marching down
Yesterday we wrote: “We want to call your attention to the price range between the new Support1 and Resistance1. Those are the highs and lows of last Thursday 8/8. We think that bulls and bears may spend one more day tomorrow Monday battling it out between each other.” The battle did happen this morning, and for a while, buyers and sellers were stuck in a narrow zone. However, once prices slipped below Support1, selling momentum started to take off. Updates from market internals NYSE and Nasdaq Advance Decline lines continue to head down, along with the percentages of bullish NYSE and Nasdaq stocks. Market breadth is certainly confirming the bearish actions. ... The rest of this article covers: Updates from market internals (more) Support and resistance levels Low-risk high-reward trade setups to consider Register here to read the rest of the article. It is currently free to join our membership. Members click here for full article and latest updates.
(It is currently free to join our membership.) Here is an excerpt from our trading plan. Major Pullback2 has effectively resumed. Updates from market internals Market breadth has firmly turned down, and is forming a pattern that increases the likelihood of more selling. The percentage of bullish stocks have also turned down, thereby confirming the bearish market breadth. The fact that market breadth has gone bearish while prices are still making an attempt to rise creates a bearish divergence. And bearish divergence tends to lead to big sell-offs. ... The rest of this article covers: Updates from market internals (more) Support and resistance levels Low-risk high-reward trade setups to consider Register here to read the rest of the article. All free. Members click here for full article and latest updates.
(It is currently free to join our membership.) Here is an excerpt from our trading plan. We’ve been referring to the big sell-off that started on July 31 as Major Pullback2. Major Pullback1 was the big sell-off back in May. These are all big sell-offs within the Up Trend that started on 12/26/18. This Up Trend by our calculation is still intact. If you are new to our system, please take a look here for a summary of all our terminology. $SPX $NDX gapped up this morning as expected. There were enough bargain hunters to carry prices all the way up into the zone between Resistance2 and Resistance3. So is the current Major Pullback2 going to resume its selling momentum? Or is this the start of Surge7 of the current Up Trend? Let’s see what market internals have to say. Updates from market internals As we mentioned before, when there is a big sell-off like this one, we need to see $VIX $VXN charts form multiple tops over multiple days before they can get back to normal, and the Up Trend can resume. So far we’ve only seen one top that’s almost done forming today. So the odds favor more top formation, and in the process, more selling of stocks. ... The rest of this article covers: Updates from market internals (more) Support and resistance levels Low-risk high-reward trade setups to consider Register here to read the rest of the article. All free. Members click here for full article and latest updates.
(It is currently free to join our membership.) Here is an excerpt from our trading plan. The big gap from Monday 8/5 left a large hole on the chart, like a huge psychological abyss. $SPX $NDX $RUT spent most of the day today trying to find enough buyers to take them across the abyss. They came close, but they didn't manage by closing. However, tomorrow Thursday may bring the big rise. Updates from market internals Volatility: We now are seeing $VIX $VXN charts forming an initial topping pattern. However, when the volatility surge is as big this one, it will take multiple tops created over multiple days before $VIX $VXN can get back into their low zones. During that process, prices can go down quite a bit lower. ... The rest of this article covers: Updates from market internals (more) Support and resistance levels How to approach your trades Register here to read the rest of the article. All free. Members click here for full article and latest updates.
(It is currently free to join our membership.) Here is an excerpt from our trading plan. Plan for the big moves and trade the big moves We were browsing a well-known Elliot Wave website today just to see what the popular thinking is among other traders. We came across this writing: “the great majority in the market were caught looking to the long side while we were hitting market highs into our major resistance/topping zone. This seems to suggest very few “out there” were expecting any bearish market action.” Our members now belong to the elite “few out there” who knew in advance since July 30 to expect this sell-off. As our long-time members know, when all market internal indicators shout the same message repeatedly, we need to listen. Big moves always follow. And conversely, don’t make any big bets when we haven’t received a loud and clear message yet from market internals. But just like we said yesterday, if you rely on market internals as your guidance system, you can only safely trade the big moves. Market internals don’t always give the kind of messages that day traders or very short-term swing traders need. So keep this in mind as you plan your trades. What is the current message from market internals? The latest patterns from market internals indicate that we are still in Major Pullback2. ... ... The rest of this article covers: Current message from market internals (more) Support and resistance levels How to plan your trades Register here to read the rest of the article. All free. Members click here for full article and latest updates.
(It is currently free to join our membership.) Here is an excerpt from our trading plan. The currency war Today was a hellish day for the bulls. The headline at WSJ sums up the reason for the panic: “Trade War Becomes Currency War: That was the ugly message Monday in financial markets, which sold off world-wide after China devalued the yuan following Mr. Trump’s threat of 10% tariffs on $300 billion in Chinese goods.” $VIX $VXN charts today showed that volatility has gone from “rising fear” to “real panic”. $SPX $NDX $RUT all gapped down at open and sold off hard. Market internals suggest that even if we get a short-term bounce, stocks are still primed for more selling for a while. Let’s dig into the details. ... The rest of this article covers: Updates from market internals Support and resistance levels How to approach your trades Register here to read the rest of the article. All free. |
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