Category Archives: Technical Analysis

RUT(hless) Massacre

The Russell 2000 index rallied 2.86% yesterday to close above both its 50- and 200-day moving averages. In the last 7 days the index has gained 6.2%, which translates to a massacre for technical head and shoulders and double top traders. … Continue reading

Posted in Technical Analysis | Tagged , , , | Comments Off

Losses Mount for Russell 2000 Head and Shoulders Traders

In the era of social media, it is unlikely that anyone can profit from a widely talked pattern, like the head and shoulders in Russell 2000 and in its popular ETF, IWM. If you are not sure of what is happening, you … Continue reading

Posted in Technical Analysis | Tagged , , , , , | Comments Off

Three Good Signs From Yesterday’s Price Action

The Russell 2000 rose (IWM), along with social media (SOCL) and SPHB (S&P 500 high beta) was steady. While there are never any sufficient conditions hidden in price action, these are nevertheless three good signs but more support must come from fundamental news for … Continue reading

Posted in ETF Analysis, Technical Analysis | Tagged , , | Comments Off

There is Always Hope Based on Technicals (and Fear)

Technical analysis always offers plenty of room for confirmation bias to work. This can be good or bad but so far and in the longer-term confirmation bias has worked in favor of the optimists while pessimists have a bad performance … Continue reading

Posted in Technical Analysis | Tagged | Comments Off

An Example of How Conclusions from Technical Analysis Depend on Data Sources

One charting service gives a value of 189.55 for the 200-DMA of SPY and another gives a value of 190.50. This difference is due to the choice of data, adjusted vs. unadjusted, and an example of how the conclusions of various analysts may depend on the price series used. … Continue reading

Posted in ETF Analysis, Technical Analysis | Tagged , | Comments Off

Short Squeeze and a Possible V-bottom in Stocks

Stock index futures are rallying this morning after the release of the employment report. A short squeeze is in progress and there is a possibility of another V-bottom. The key level to watch in S&P 500 is just above 1991. … Continue reading

Posted in Market Statistics, Technical Analysis | Tagged | Comments Off

On the Significance of the Russell 2000 Divergence

The divergence between S&P 500 and Russell 2000 widened yesterday and the question is how significant it is and whether it can become the cause of a market top. The charts below show that this much talked divergence is not significant … Continue reading

Posted in Technical Analysis | Tagged , | Comments Off