Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market S&P Upside In Question. Watch The Nasdaq

Stock-Markets / Stock Markets 2013 Sep 08, 2013 - 06:02 PM GMT

By: Michael_Noonan

Stock-Markets

The point of reading developing market activity, as seen in charts, is to eliminate any need to “predict” what may develop next day, week, or month. There is no more reliable a source of information than the market itself. Everything one needs to know is found within price and volume activity, over time. If you know the market trend, and you have some solid rules of engagement, profitable success is almost assured.

The stock market has made historic highs, but there are questions regarding its ability to sustain the upward drive during the natural market-aging process. Last time, there was a discussion about rules and a need for caution, [S&P And NAS - Best Offense Is A Good Defense, click on http://bit.ly/1dAUwUB, if you missed it].


That has not changed within the question of, in the past week, has the market changed?

The answer has to be yes because there has been more activity, but recognizing how the market has changed did not get any easier. The purpose of first identifying the trend is to be in a position of knowing which trading rules to use as a guide. There are times when clarity is lacking, and it is best to wait for the market to confirm its intent before getting overly committed to the upside, or too defensive on the downside.

The overall structure of the weekly chart remains positive, and continuation higher should be the norm until there is something more to assess otherwise.

In trending markets, one wants to see synergy of various time frames, but it is not there in this daily chart, relative to the weekly. The daily trend has weakened. As an index, it is a warning for individual stocks that are not showing profits, a was discussed last week. For those stocks that are profitable, protective stops are still advised.

Friday was an important day for the up trend to reassert itself here. There was a lot of volatility, and at the end of the day, price was little changed from Thursday’s opposite performance of a very tight range. The close was in the upper half of the bar, a plus, but there needs to be follow-through on Monday because of where recent activity lies… just under 1670 resistance, and also under a 50% range rally from the recent high lot low. A market is considered weak when a rally cannot rise above a half-way correction area. These are negative signs and if not erased by upside activity, the market can correct even further to the downside.

Perhaps the best hope for the S&P lies in the stronger tech-oriented market, the NASDAQ. When price gaps up to establish is higher trading level, it is a sign of strength, and that gap has never been challenged. The entire market, since mid-July, has been consolidating and not correcting. The difference is a sign of relative strength, for a correction takes price lower in retracing recent gains from the last swing low.

Taken on its own, the NAS looks higher, and it may be the best barometer for the S&P.

Trade accordingly.

By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2013 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in