Charting Stocks

The Dow Jones Industrial Average breached the 10,000 level at the open and then rallied back 180 points from the low to close at 10,193. In a previous post I mentioned that the major averages were close to major support levels while approaching oversold levels. Those levels were tested today before the market moved higher.
(Chart [...]

After dropping 376 points yesterday, the Dow Jones Industrial Average is set to open down 95 points which would put it below the psychologically important 10,000 level. In my previous post, I mentioned that the ‘flash trade’ prices were real and we were heading for a retest of those lows. Currently, the major averages are [...]

Both the Dow Jones Industrial Average and S&P 500 Index are trading below their 200-day moving average.  NASDAQ bucked the trend bouncing back above it 200-day MA.
Many analysts in the technical community were unsure if the ‘flash trade’ lows were actual prices which should be included in their analysis, or merely a ‘machine’ blip which [...]

Chart of the Dow Jones Industrial Average priced in ounces of gold since 1968. The data set used divides the DJIA annual closing price by that years average gold price. Because this is annual data, some of the extreme monthly readings are smoothed out.
The bottom, in our example, occurred in 1980 when the ratio was [...]

The Dow Jones retreated from key Fibonacci level of .618 (61.8% of the previous move) in April after the probable completion of wave 5 (Elliot Wave count).
Normally, bullish trends are characterized by 5 waves, while corrective trends are characterized by 3. Considering the market completed an upward 5 wave pattern, rather than 3, suggests that [...]

The Dow Jones Industrial Average ended the last day of a volatile week down 162 points (-1.51%). While both the long and intermediate term outlook appear negative, the short term picture may improve in the coming days. It is important to note that the following is a 10 minute chart and so conclusions drawn must [...]

On Wednesday, I wrote about the troubling signal given by the Volatility Index (VIX) as it surged in a manner which resembled the 2008 crash.  Today we can add another market indicator to the “trouble” list – The US Dollar.
I’ve mentioned the inverse relationship between the US Dollar and stocks several times. This relationship began [...]

Last week, we mentioned that technical indicators began to turn negative. Technical damage continued today as the Dow Jones Industrial Average, Dow Jones Transportation Average, and  S&P 500 closed below their pivotal 50 and 200 day moving averages (first time since March), with all 3 averages registering an RSI sell signal.  NASDAQ bucks the trend [...]

Technical indicators are beginning to turn negative for the first time since the beginning of the March rally. The S&P 500 index  violated its 3-month uptrend while the Dow Jones Industrial Average closed below its 200-day-moving-average. Momentum indicators have turned bearish.
The Dow Jones (Chart below) is still holding on to its uptrend line though RSI [...]

We’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]