After nearly ignoring the pivot points in January, the market followed them to near perfectiom in February, topping for the month right on R2, the going marginally higher as soon as March started. If it stays true to forma this months, I would expect na range between P, which is 1352, and R2, at 1417, with a less probable chance of going as low as S1 at 1326. One thing is clear: we are due for a correction. Another thing is also clear: we have been due for one for some time. So being due is no assurance we will have one.
On the weekly chart we are right on resistance from 2011, have a declining MACD histogram, declining volume, but weekly stocphastics are still rising, so I would not be betting on an epic collapse.
Take all the potential negative on the SPX and throw them out: the Nasdaq is making a mockery of them. Until this show some signs of weakness, I don't think we will see anythong more than a mild pullback.
The Dow industrials are now into new high ground for the last 3 years. Since we are now 3 years from the 2009 bottom, we are getting a perfect look at what a bull market looks like. If you are a practitioner of Elliot Wave, you would probably conclude that we are in a wave 5 and are very likely to go higher.
The Transports are now officially not playing along. They have already lapsed into a mini correction after ;agging badly on the way up.You would expect this with oil going up.
Oil going up may not be a good excuse for the new found weakness in the Russell 2000. This had a really bad week this week, and appears that is is entering a correction now., If so, expect the rest of the market to follow.
The new highs update will be a little late tonight.
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.