• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Last month we concluded that given the oversold nature of the market, support at 1955 should hold, and the SPX should continue making new highs. Since then 1955 was tested twice and held, and the SPX went through two overbought/oversold cycles, making marginal new highs on both occasions:

SPX Chart
Larger Image

The DJIA and the NDX made new highs as well.

Which brings us to the Russell 2000 index which made a new high at the beginning of July, but since then is lagging behind the other majors. Looking at the monthly chart, it is actually showing a textbook momentum divergence -- a double top accompanied by lower stochastic readings:

Russell 2000 Monthly Chart
Larger Image

The first level of support for the Russell ETF is at 112, and the next at 107. Any break below these levels will put the chances for continued advancement of the other indices in serious doubt.

It is interesting to note that to construct the Gann angles for the IWM we used the combined input from two of OT Signals' new indicators: Swing Time and Swing %. They measure the average swing duration and average % swing advance/decline for your instrument of choice. Then it's just a matter of using these numbers to mark price and time targets, or plugging them into your favorite TA tools, and eliminating all the guess work.

Gold briefly broke above the 50% retracement level of the '09 - '11 bull run following the MH17 crash, but was unable to hold on to the gains, and is testing old support levels dating to April '14. Just like before, we can't get bullish unless it breaks above that 50% retracement. And, unlike GS, we see long-term support for gold at 930, and not at 1050:

SPDR Gold Trust Shares Weekly Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment