I did not see what the news was this morning, and didn't bother to find out later as I had better things to do, but whatever it was sent the market to regain almost all of what it gave up yesterday. Once again, the simple 200dma is the stopping point. Monday we will see if another test of 1267 is in the cards, or if we stop dead here and move down again. Either way, it is going to be tough to get a rally going here, and it may be just before Christmas, when volume shrivels to nothing, before we get one. TPTB are just too close to having a positive year in the market for them to let it go now, but I may be overestimating their power. There is pretty clearly some down ward pressure here, and any moves up are being met with distribution.
On the weekly chart, the 40 week average is sitting right above, daring the market to try to cross it. It is now descending, something it hasn't done for this long since 2008. The 10 week line is rising, but has not shown much of a propensity for support. Short erm this has some upward momentum, but the down trend this has been in since May is intact.
About the only difference on the Nasdaq is the volume pattern looks slightly better. I expected this to be a lot weaker than the SPX, but it isn't.
I expected the Dow to be stronger, and it is, by quite a bit. This is probably being targeted by TPTB to finish positive on the year, and I'm sure it will, come hell or high water.
The transports are trading in a much wider range, but overall look to be abut in the same technical shape as the SPX and Nasdaq. Once again, the 40 week line stopped this advance, with no resolution coming until next week.
The Russell 2000, despite being still well under the 40 week line, isn;t that much weaker on a relative basis, but it is trading in a very wide range. This had been very weak, but is slowly gaining relative strength.
I am not a financial professional, just a guy that trades my own account.
I am also not a musical professional, just a guy that makes music on the computer. Thus, two blogs, one trading and on musical.
And, no, the picture is not me, it is the late, great John Belushi, one of the inspirations for these blogs.
This blog is focused on technical analysis of stocks and markets, putting heavy emphasis on chart analysis. My trading style is derived primarily from my mentor, William "Yoda" O'Neil, and the focus here is on leading and breakout stocks, but all forms of trading are covered to some extent. Economic and political news that effects the market are also topics here, and the blog may occasionally become a platform for my political and philosophical ranting. I keep several spreadsheets on Google docs which track various aspects of the market and readers are welcome to vies and comment on them.
Google Docs Spreadsheets
There are several spreadsheet that I maintain on Google docs to track various watchlists and trends in the market.
1. The earnings list - a group of small and micro cap, low float stocks that have exhibited recent rapid earnings growth. They are modeled along the lines of William O'Neil's CAN SLIM system, but limited to small cap, highly volatile stocks.
2. The relative strength list - a group of stocks which are near 52 week highs and have shown an increase in average daily volume. The list is limited to the top 200 stocks according to my methodology, which will be detailed on one of the pages of the spreadsheet.
It can be accessed here, and is also updates weekly.
3. Relative strength by industry - Uses industry data from Finviz.com to track the percentage of stocks within each industry that are in the top 25% of the 52 week price range, looking for trends.