Archive for the ‘Uncategorized’ Category
Will the Bullish Move Continue on the DOW, S&P 500 and Nasdaq?
March 6th, 2010 | 
Author: The INDU, SPX and COMPQ all formed Cup & Handle Chart Patterns and broke to the upside with gusto out of that pattern. The volume was not impressive which leads me to believe that we could stall and possibly retrace. All three indexes broke above the 50 SMA and a logical retracement target could be back to test the moving average. The COMPQ formed a double top which give further credence to the thought that the index will consolidate and possibly retrace. If the COMPQ breaks above the double top, I must see that happen on increased volume to confirm the breakout.
DOW
Get the Flash Player to see the wordTube Media Player.
S&P 500
Get the Flash Player to see the wordTube Media Player.
Nasdaq
Get the Flash Player to see the wordTube Media Player.
Posted in 
Video Charts
INDU Chart 2-12-2010
.
.
SPX Chart 2-12-2010
.
.
COMPQ Chart 2-12-2010
Improve Your Market Timing: The Double Top
- The buyers at the top of the first peak were victims of buying from the “smart money” as they sold to the “not so smart money” at the top of the trading range.
- These unfortunate buyers will usually hold, refusing to take a loss and waiting for the opportunity to unload the stock at a break even.
- When that opportunity presents itself, at the second top, selling pressure increases and drives the stock lower.
- Other knowledgeable traders who know that the “Double Top” will present an opportunity to short, will do so thereby increasing the velocity downward move.
Charts Week Ending 2/5/2010
INDU Video
SPX Video
COMPQ Video
RSS feed
