The Week in Crayons
The monotony of the endless stair case up in the markets was finally broken this week as price action for the first time in months saw a substantial albeit quick retracement. While most of the selling took place in one day of controlled selling, we bounced throughout the rest of the week and find ourselves very close to the point in which we began the week. However, the one day of true distribution was able to change the technical landscape of most of our major indexes and is likely to be followed by other days of sporadic selling in the next...
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As has been the norm throughout this year, the markets stair-stepped just a bit higher yet again this week after a couple of half hearted attempts at a pull back were once again met with strong buying. While the pervasive dip buying has stymied any attempts at a substantial price correction, momentum continues to wane as we slowly squeeze upward in the broad market indices. As has been the case for several weeks now, we remain extended, overbought, and at resistance, yet the trend is unmistakably up and should be respected until proven...
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Much to the chagrin of bears everywhere, the markets continued their relentless march up for yet another week as the rally to open 2012 continues. While there continues to be sporadic bouts of selling intraday, there has been a strong and pervasive bid that has supported price action and has consistently thwarted all attempts at selling this market down. From a technical perspective, nothing has changed in about six weeks now as we remain perpetually oversold and extended as we slowly squeeze higher. This is clearly evident in a chart of the...
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Despite ending the week somewhat off their new highs, the markets for the most part continued the slow and relentless rally that began about a month ago. As has been the case during that time, sellers have been few and far between and price action once again occurred on muted volume with relatively little volatility. Not much has changed since last week from a technical perspective and most of the analysis I mentioned in last Friday’s post still stands. Looking at a chart of the e-mini futures contract for the S&P 500, we can see...
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The markets continued their slow march up this week with little to no real pull backs as the bulls relentlessly stepped in to support the markets any time there was a hint of a drop. We have now drifted in one direction(up) with relatively light volume and volatility for about a month on most of the major indices which is in stark contrast to the highly volatile back and forth movement we experienced for most of the latter portion of 2011. While we can’t truly know until we experience a substantial retracement on the current move, it...
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While the markets opened down on Friday looking tired and ready to roll over after a week of positive gains, they gained traction midday and eventually rallied to close just below the days high’s. Friday’s price action was part of a larger pattern of afternoon strength that has become prevalent during the early stages of the 2012. While this is typically bullish in nature as it shows that sellers are having difficulty in gaining control of the markets from the buyers, traders should also take into account that sellers are...
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