• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Stock Market: CNBC Report

LET'S LOOK AT THE FTSE DAILY CHART

Last week I indicated the sideways pattern had run its course and there needed to be an up week or the pattern could represent a problem for the trend. We got the up week, now it needs to continue and not leave a little "false break" pattern behind. Most fast moves come from breaking to new highs that fail to follow through. The low of the one day counter trend needs to hold to keep a strong trend. It can be broken but needs to be recovered the next day or the index will be starting to show risks of a false break pattern.

LET'S LOOK AT THE S&P 500 INDEX

Last week we were looking for a possible correction between 1450 and 1458 in price. There was a 90 calendar day increment that appeared to be resistance in time so we were looking for a correction of some sort. Whether this was going to get legs to the downside is in doubt since this index is more likely to exhaust into a high than limp into it as this has been doing. As you can see we did get the correction, if there is a real problem with the trend today will be another wide range day. Because the low to the move down stopped at "obvious" support it could show a small range day with Tuesday as a down day if there is a short term problem with the trend. Any other price action but those scenarios likely means a test of the high but I still believe the bond market is important for stocks at this stage. The risk in the S&P is 56 points down.

LET'S TAKE ANOTHER LOOK AT THE US T-BOND MARKET

Notice the rally has been 7 trading days and could still be a counter trend as long as it stayed less than 12 days. It could also indicate a fast trend down if it turned down prior to the price low of December 28 and 29 and both of those criteria are met. The rally was also a 3/8th retracement and that keeps the downtrend intact. We have discussed many times how that 3/8 retracement level is the highest probability for a counter trend rally. It is possible to see another marginal new high to give a little 5 wave structure up and a higher probability to the pattern completing as a counter trend rally. Bonds could still show a fast trend down this week or next as long as the criteria I just laid out remains intact. The next important time period appears to be the first of March.

 

Back to homepage

Leave a comment

Leave a comment