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Stock Market Analysis & Near-term Outlook

Technical analysis of the US stock market via the S&P 500, Nasdaq 100 & Dow Jones Industrials. Key support levels & developments to watch for are covered along with near-term price targets. I've also included screenshots of the 3 charts covered in the video below (via 60-minute futures charts): Nasdaq 100, S&P 500 & Dow Jones Industrials.

click on the first chart to expand, then click anywhere on the right of each expanded chart to advance to the next image

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Jan 19, 2018 10:34am|Categories: Equity Market Analysis|Tags: , , , , , , , , |7 Comments

7 Comments

  1. stock51 January 19, 2018 10:45 am at 10:45 am

    Thank you, very profound info

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    • rsotc January 19, 2018 11:14 am at 11:14 am

      YW & thx for the feedback. Hope it plays out for a decent pullback short trade and/or long-side bounce trade if/when those final near-term targets are hit. One thing that I mentioned in recent videos but forgot to bring up in this one is that if these 60-minute scenarios begin to play out, we’ll have to turn out focus to the more significant daily time frames.As of now, patiently waiting for all 3 large cap indices to take out those uptrend lines although it wouldn’t surprise me to see that occur on an opening gap down next week as that would deny the maximum amount of shorts an objective entry & trap as many longs as possible as the market doesn’t like to make things easy.

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      • raider74 January 19, 2018 1:53 pm at 1:53 pm

        RSOTC, if I may ask, how would you trade these shorts, e.g. buy puts on the long ETF, buy a short ETF, etc.? TIA.

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        • rsotc January 19, 2018 3:05 pm at 3:05 pm

          One could use any of the 1x (non-leveraged) tracking ETFs (SPY, QQQ or DIA), any of the 2x or 3x leveraged ETFs (QID, SDS, SPXS etc..), futures (/NQ, /ES or /YM) or options.

          While I can’t provide specific advice to anyone, generally speaking I can say, emphatically, that one should stay away from options until they are experienced & comfortable with trading stocks and ETF and only then, after they read up extensively on the pros, cons & various strategies for trading options.

          Futures contracts & leveraged ETFs are essentially the same as trading the 1x index tracking ETF except one must account for the leverage in calculating their gain & loss potential on the trade & then set stops according. For the most part, non-leveraged ETFs are the best vehicle for those relatively new to swing & trend trading.

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          • raider74 January 19, 2018 3:34 pm at 3:34 pm

            Thanks!

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  2. rsotc January 19, 2018 11:06 am at 11:06 am

    Nice, clean, large & fully mature bearish rising wedge setting up on the daily chart with the potential for a ~5% (followed by a reaction) & ultimately ~9% drop (measured from the recent highs…i.e.- larger percentage drop if IWM works higher within the wedge before breaking down below the uptrend line). All we need now is those uptrend lines on the 3 major large cap indices to break & the small caps will follow the leaders down.

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    • GetItRiight January 19, 2018 3:10 pm at 3:10 pm

      I ‘love’ how the most rate sensitive stocks rally today more than 1%, when 10YR yields are at their highest in the last months. Zerohedge had an article today quoting BofA statistic of largest ever 4 week inflow into equities, of $23.9B. With the lowest level of cash on the sidelines, I am sure these are funds are coming from margins, which are also at ATH. What can go wrong? We just need needle to prick the bubble.

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