Category Archives: Technical Analysis

Bond Bears Are Getting Fried Once Again

The 10-Year Note yield closed at 2.35% Friday after dropping as low as 2.30% during the day. Although the rally in bond prices has reached overbought levels, bond bears who were dreaming quick profits from a trend reversal last month are getting fried.  Share

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S&P 500 Index Rebound Near Completion and a Few Thoughts on What Lies Ahead

The S&P 500 index reached its 50-day moving average yesterday after a 61.8% Fibonacci retracement of the drop from the high of July 24 and to low of August 7.  The market needs new fuel to go higher and there is high … Continue reading

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Probability of S&P 500 Testing Recent Highs Before Recent Lows

The S&P 500 made an all-time high close 14 trading days ago at 1987.98 and then started to correct towards a short-term low at 1909.57 last Thursday. The included chart shows an indicator that has a value equal to the probability of … Continue reading

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The Technical Signals Than Get You Out and Then Back In

A must read yesterday at The Reformed Broker blog about pundits, market top calls and the fact that “The guys who get you out will never get you back in“. On the other hand, resorting to buy and hold does … Continue reading

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Shorts in Stock Indexes May Be Squeezed Soon

The S&P 500 is about to enter a major support area where two up-trendlines, a horizontal support line and the 200-day moving average all meet. A strong rebound may occur off these levels with shorts getting squeezed out while the … Continue reading

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Short-Term Correction Targets for Major U.S. Indexes

In case the correction continues, the short-term target for S&P 500 is about 2.6% lower at horizontal support, NASDAQ has formed a double top with a potential target of -5% and the weak technically Russell 2000 may test its May lows, … Continue reading

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A Not So Surprising Drop in Gold Prices

Although some analysts thought yesterday’s drop in precious metals was surprising, there were plenty of technical warnings that a correction was looming. As a matter of fact, last Friday we warned about the possibility of a bull trap in GLD. Share

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