tsptalk's Market Talk

[tsptalk]

The HYG High Yield Corporate Bond fund has been doing well since bouncing off of the 100-day EMA again. I do see the potential for a head and shoulders pattern as the right shoulder may be getting formed, but we saw almost similar action in March which led to new highs.

 

[tsptalk]

Who knows where this will end today, but so far the SPY filled a gap and rebounded. But it is back below the 50-day EMA.

The space between Monday's close and today's high (currently about 244.50 and 244.10) can be considered an open gap, although not everyone views those as gaps and they aren't as apparent on the chart.

 

[tsptalk]

Small caps are trying to break the downtrend, but 50 EMA still in the way...

Transports testing resistance too, although peaking above the 50 EMA. Tough one here , but you never know before a holiday. They can be pushed around pretty easily.

 

[tsptalk]

Depending on where you draw your crayon lines, this Nasdaq 100 looks like it really wants to (or has already) breakout of the bull flag....

 

[blueroadster]

Small caps are trying to break the downtrend, but 50 EMA still in the way...

Transports testing resistance too, although peaking above the 50 EMA. Tough one here , but you never know before a holiday. They can be pushed around pretty easily.

Nice to see DWCPF move up above the 50 day and transports cracking above resistance. Hopefully, the advance will hold through the close and we get a nice wave up before the weekend holiday.

 

[tsptalk]

Nasdaq 100 (aka QQQ) just a few points from a new all time high. What a difference a week makes.

 

[blueroadster]

Nasdaq 100 (aka QQQ) just a few points from a new all time high. What a difference a week makes.

So what would this three day pattern be called? It is not technically a three white soldiers pattern since the opening price (for each of the last two days) was not within the previous day's candlestick.

 

[tsptalk]

I don't know candlestick patterns in that way. I just see a breakout from a bull flag but I'm also concerned about this being a pre-holiday trading week on light volume.

Normally a bull flag's upside target is the length of the pole so in this case we'd be talking about 6275 - 6300 before it's over, but that's if this is "normal" action. The jobs report tomorrow will make things interesting.

 

[tsptalk]

Well, here's the post holiday reversal we've been talking about in our daily commentary.

The Nasdaq 100 (QQQ) had a tiny open gap that got filled this morning, but more importantly it is testing the top of its big bull flag today. So far not terrible technical action but the top of the flag or the 20-day EMA really need to hold.

 

[Cactus]

Looks like more than post holiday reversal to me. I think it's the NK fear more than profit taking at work here.

 

[tsptalk]

The Nasdaq 100 (QQQ) had a tiny open gap that got filled this morning, but more importantly it is testing the top of its big bull flag today. So far not terrible technical action but the top of the flag or the 20-day EMA really need to hold.

 

[tsptalk]

Interesting little drop and a pop in the Corp. high yield bond fund today. That double top gave us a pullback, but was that it?

 

[tsptalk]

The ECB meeting sends dollar even lower...

https://www.bloomberg.com/news/arti...in-must-be-monitored-as-source-of-uncertainty

 

[tsptalk]

The Dow is trying to hold the 50-day EMA...

While a couple of important charts pullback from double tops...

This one could be forming a cup and handle...

 

[tsptalk]

The small cap index ran back into that trading channel last week and today it is testing the top of it again. Also hitting some descending resistance.

 

[tsptalk]

These "F" flags can be tricky. They could ride up that flag for days, longer than seems reasonable. But when it breaks, it tends to break down hard. So how many days of gains are left in it before those two open gaps get some attention?

 

[tsptalk]

After a big run higher, the economically sensitive copper has pulled back this month. It's trying to hold at the 50-day EMA.

Interesting with stocks rallying and the dollar still falling.

 

[FireWeatherMet]

He Tom,

Does Copper act like the Transports?? Canary in the coalmine?

 

[tsptalk]

It is normally. It's supposed to be a good indication of the economy, but so is oil and we've seen them moving in opposite directions recently. The dollar seems to be a major factor so I think the signals are mixed this time.

 

[tsptalk]

Hmmm... what's going on in Greece?