• 528 days Will The ECB Continue To Hike Rates?
  • 528 days Forbes: Aramco Remains Largest Company In The Middle East
  • 530 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 930 days Could Crypto Overtake Traditional Investment?
  • 935 days Americans Still Quitting Jobs At Record Pace
  • 936 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 940 days Is The Dollar Too Strong?
  • 940 days Big Tech Disappoints Investors on Earnings Calls
  • 941 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 942 days China Is Quietly Trying To Distance Itself From Russia
  • 943 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 947 days Crypto Investors Won Big In 2021
  • 947 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 948 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 950 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 951 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 954 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 955 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 955 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 957 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Stock Market: CNBC Report

LET'S LOOK AT THE FTSE DAILY CHART

Last week I indicated we could have a strong trend starting as indicated by the one day counter trend down. IF that were the circumstance the index needed to hold the low of the one day move down and it did that last week.

There are a few time periods that run from low to high or high to low and repeat in most markets, over and over again. In the US Indexes it is 90, 135 and 180 calendar days. In the FTSE there is also a 144 vibration that can end trends or be viewed as resistance in time. So whenever the index is 144 calendar days from low one should look at the probability of a correction the key word is look. Remember these time periods are in calendar days. Friday was 144 calendar days from the September 25th low but there is little on the chart that makes the index appear vulnerable -- no distribution pattern and no exhaustion.

So we can continue to apply trending criteria to the move up. Because of the nature of this advance it should not correct more than 4 days or it will indicate the trend is in jeopardy and if that occurs it indicates the next rally could fail. Please understand indexes need to exhaust or show a fast move into important highs and this is an exhaustive style of move now as was the September and October move up of last year.

S&P 500 INDEX

The previous week the index showed a high and corrected back to the obvious support of the previous highs thus holding the trend. It then needed to show a second wide range down day or it would be back testing the highs. There was no wide range down day so it is back marginally above the high. I have had 1458 as significant resistance in price and that is still holding the index back. This trend has been struggling up the past three months as each new high immediately falls back below the breakaway point. Analysis of the pattern of trending makes this an important point. It could either start an exhaustion or fast trend up-now-as occurred Oct 3 2006 or Dec 16 2003 or we'll see a correction greater than the normal three days. This week should tell us if the index can get legs. Volume has been decreasing the past three weeks and does leave a possibility for further correction. But a strong up day would be bullish and indicate the index had held a previous high holding the index in a strong position for the next rally. Dropping below the high doesn't end the trend but if there is follow through to the down day it could indicate the 30 or 56 point correction that is inevitable.

US T-BONDS

Last week I thought bonds could still be vulnerable to a fast move down if they could stay below the 3/8 retracement, which was also the price of the December low. Moving above the price of the December lows exceeds the criteria for a fast trend. The trend still looks down but when it will resumes the trend I can't see. The low was 60 calendar days from high and many times that sets up a 90 or 120 vibration in time so March 1st we'll look at this item again. Steve, when you told me last week everyone was looking for a move down that was the key to this pattern.

 

Back to homepage

Leave a comment

Leave a comment