Category Archives: Technical Analysis

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

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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

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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

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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

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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

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Another V-Bottom in S&P 500?

After a 61.8% Fibonacci retracement of Thursday’s high-low range on Friday, the S&P 500 may be preparing for another V-bottom and new all-time highs. This year we had 3 major V-bottoms in the index and last year there were 4 more. … Continue reading

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Why The Death Cross in Russell 2000 is Important

In the last few days we are witnessing a peculiar phenomenon: many technical analysts who in the past have embraced the death cross as an important signal are now arguing against its significance. But again they reject this pattern based on wishful thinking … Continue reading

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