Close - this is why you don't take the trade until the signal occurs occording to your rules...a potential reversal that fades and goes lower...No Signal to enter...a valuable lesson on why rules are so important and why we stress them everyday at Chart Signals...
12:34 pm EDT - SPY gap down to piercing line to inverted hammerand the day is only half over...Euro has continued to weaken...interest rates higher...financials XLF has moved lower...SPY near low of the day and still above support...
10:44 am EDT - with VIX at 42+, intra-day volatility should not surprise you, the SPY has faded again and is near the open, this is why we want to be watching for a potential bounce but always follow our rules for entry...you can however see that buyers are beginning to appear near support...
10:12 am EDT - Be on alert...not only has this morning's gap filled, there is a potential reversal going on in the SPY and its piercing line candle which could turn bullish engulfing...this could become a key reversal day, which would not be overly surprising with the majority of the weakness on Friday occuring in the last 15 minutes (see Friday's comments)...as always follow your rules...
BMO – ES -7.75 and NQ -20.00 futures are lower about 25 minutes before the open in pre-market trading and point to a lower open and an SPX above the 1,121 support area…volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is down 7 cents on 23,800 shares in pre-market at this time…
12:34 pm EDT - SPY gap down to piercing line to inverted hammerand the day is only half over...Euro has continued to weaken...interest rates higher...financials XLF has moved lower...SPY near low of the day and still above support...
10:44 am EDT - with VIX at 42+, intra-day volatility should not surprise you, the SPY has faded again and is near the open, this is why we want to be watching for a potential bounce but always follow our rules for entry...you can however see that buyers are beginning to appear near support...
10:12 am EDT - Be on alert...not only has this morning's gap filled, there is a potential reversal going on in the SPY and its piercing line candle which could turn bullish engulfing...this could become a key reversal day, which would not be overly surprising with the majority of the weakness on Friday occuring in the last 15 minutes (see Friday's comments)...as always follow your rules...
BMO – ES -7.75 and NQ -20.00 futures are lower about 25 minutes before the open in pre-market trading and point to a lower open and an SPX above the 1,121 support area…volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is down 7 cents on 23,800 shares in pre-market at this time…
TLT is up 1.10 and the Euro is down 27 pips in overnight trading …Watch for any bounce in the Euro which might occur today…
NDX leaders AAPL, AMZN, NFLX and PCLN are quoting higher… BIDU, GOOG and QCOM are quoting lower…
Dave’s Insight for Monday: Lower Euro…stronger dollar…stronger bonds (lower interest rates)…Financials lower on light volume…resulting in a lower open…Watch for at least a partial fill of this low volume pull back…With the SPX near support a potential reversal could occur, but we would need to see price above Friday’s high…Wait for your entry signals before taking new trades…Watch XLF, volume and breadth as key factors in any SPX move up or down…move stops on profitable trades…
SPX
Resistance: 1,146, 1,160, 1,177
Support: 1,134, 1,121, 1,114
Quoting Down – GMCR, CMG, CF, CRM, LVS, IBM, SOHU, CLF, CAT, UCO, DE, WLT, GS, URE, MCP, SLB, VMW, POT, LNKD, , HLF, HAL, CHL, TBT, ZION, RCL, UAL, CRUS, TIF, MOS, C, PCX, WYNN, VIDU, FSLR, BIIB, GOOG, ESRX, JOYG, COST, ILMN, SBUX, WFM
Quoting Up – FAZ, TLT, SWN, SLW, CDE, STI, PCLN, NFLX, AMZN, AAPL, YHOO, SRCL, NTAP
4 comments:
Dave,
I have been monitoring the Intermediate green line on the MFC study. I notice you have made reference to this several times as well. My question to you is: how do we interpret the move of the Intermediate green line on the weekly and monthly charts of the $SPX and other indexes?
Today on the weekly chart of the $SPX, the MFC intermediate line has crossed below 20 (intraday). On the monthly chart the intermediate line has crossed below 80 (intraday). When I compare the current pattern of the intermediate line on the weekly chart, it closely resembles the same pattern of 2008.
You’ve taught us that history repeats itself and I’ve also heard you state recently this is not a repeat of 2008. However, is the weight of the evidence telling us something different? If you could review and explain the 5 year weekly and 10 year monthly $SPX charts using the MFC line for us, I think we could all benefit and understand the current market status better.
Thanks Dave.
JA - California
the intra day comments are absolutely great! An absolutely great learning tool.
Very much appreciated Dave!
thanks for the intraday updates
Don
Dave,
I agree with the others. The intra-day posts are priceless. I was stopped out of my AMZN put at a small profit in the morning but re-entered later in the day. Looks like there was some early buying in the NASDAQ 100 but faded into the day. SINA, WLT, SOHU, SPY, DECK and a few others continue to move lower. NEM and CPB and NFLX calls are still keeping me long.
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