Technical analysis of the Russell 2000 Small Cap Index via the tracking ETF, IWM as well as SPY, QQQ, MDY & the Wilshire 5000 Index.
A look at the near-term trend in the US stock market, which has been been bearish to sideways in recent months, along with a discussion of how to adjust your trading during such periods of sideways consolidation. Also covered are some clues which indicate which way the stock market might break from the recent trading range & how to prepare to position accordingly.
The US equity markets were closed today (Monday December 26th) which leaves just four trading days left in 2016. While I'll be away from my desk more often than not over the next few days as I typically refrain from trading during the final weeks of each year due to the decreased trading volumes & increased whipsaw signals in the markets & many individual stocks, over the next week or so I plan to publish the near & longer-term outlook for the following asset classes: The U.S. equity markets (to be covered in this post) Gold, Silver & the precious metal [...]
The lead dog (Nasdaq 100) has now followed every other major stock index to print a daily close below the critical "flashpoint" support levels & with Facebook making the expected post-earnings face-plant, with the stock closing down nearly 9% in the after-hours session following their earnings report & conference call, we now have about as good as a sell signal can get on the US stock market. Some of the likely key support levels/downside target shown here with some specific price targets & possibly some official swing short trades on the broad market tracking ETFs to come as soon as tomorrow. [...]
As a follow-up to the October 17th US Equity Market "Flashpoint" & Target Levels post, in which the critical support levels on the major US stock indices were highlighted, all of those major diversified stock indices broke down & closed below those key support levels today except the lead sled dog, the Nasdaq 100, which managed to pull a stick save with a late day rally to close back above the 4749.50ish level following a brief dip below earlier in the session. Those previous charts posted just over two weeks ago along with [...]
Here's a quick snapshot of some of the major US stock indices covered in last night's video. The key support levels that were referred to as potential "flashpoints", key support levels which are likely to spark an impulsive wave of selling if taken out, are highlighted in red. The white horizontal lines below are key support/targets levels for each index. (click on the first chart to expand, then click the arrow to the right of each expanded chart to advance to the next full size chart image)
The first part of this video reviews the historical performance of one of my favorite intermediate-term trend indicators & how it is best applied when aligned with the primary trend as well as major inflection points in the market. These intermediate-term trend indicators have recently flipped from bullish to bearish on several of the major US equity indices with the remaining indices poised to follow suit on any substantial downside in the markets going forward. While the first part & bulk of the video covers the intermediate-trend on the major stock indices, the second part of the video is a brief [...]