A quick (10 min) wrap of the price action in the US stock market over the last week along with some key technical levels to watch for next week & some unusual late-day market action that could be a harbinger of a sell-off next week.
A discussion on the benefits of using OCO (One-Cancels-the Other) orders when swing trading or investing followed by the near-term outlook for the US equity markets via SPY, QQQ & IWM.
The charts below help to illustrate that, at least as this point, the recent rallies in the major US stock indices have so far been nothing more than typical oversold, counter-trend bounces off support with every major US stock index still well within the typical Fibonacci retracement levels. All major indices, other than the Nasdaq [...]
The bounce resulting from the bullish divergences highlighted yesterday continue play out so far today with SPY now at dual resistance: The 50% Fib retracement from the most recent plunge (yellow lines) as well as this previous reaction high. Note that the 38.2% retracement of the move down off the March 15th highs, which could [...]
So far today, the divergences on the 5-minute charts have played out for a relatively muted bounce in the SPY that hasn't even retraced the low-end (38.2% Fib) of a typical counter-trend bounce. While more upside is possible, should the SPY reverse soon & take out yesterday's lows, that would likely spark the next impulsive [...]
Consumer spending accounts for more than two-thirds of U.S. economic activity. As this 11-year comparison of XRT (SPDR S&P Retail ETF) vs, the S&P 500 shows, the stock market & the retail sector historically move in near-perfect unison, with any divergence between the two very rare and a potential warning sign as was the sharp [...]
A quick overview of the US stock market via the 60-minute charts of SPY, QQQ & IWM: SPY resumes the near-term downtrend following the recent breakdown & backtest of the purple minor TL, QQQ seems to be in a state of suspended animation over the last month, going virtually nowhere despite clearly bearish technicals that [...]