Growing Patterns
Week in review, lets see how things are growing...
SPX - Are we setting up for a back test and rejection? Or are we about to break through?
Author Archive for: Alex - Chart Freak
Entries by Alex - Chart Freak
Whats Up?
I'll tell you whats up. The SPX , DJIA, NASDAQ, IBB, IWM, SOX, USD, OIL, OIH, XLE, SILVER, all closed higher and GOLD & GDX were for up for most of the day too. Yes, it was Green just about everywhere except for NATGAS. Lets discuss the points of interest.
This is basically what the SPX, NASDAQ, DJIA, IWM, etc. all looked like.
Running
Some of the 'set ups' mentioned last week are running now, other stocks that ran recently have pulled back and may be currently setting up to make another run higher. Lets discuss this after our market review. Something interesting may be happening there too.
From yesterdays report, we saw this in a few sectors
Now we are getting a little follow through to the downside
This caught my eye however...
Just A Little Change
The markets didn't move in quantum leaps yesterday, but there was a little change in how we may want to view things. Lets discuss what stayed the same and what may have changed.
IWM - We saw a reversal at a point of resistance
Moment Of Truth Time?
I was a little surprised to see the dollar down and also see the $CRB, $GDX, and $OIL down too. They've all had nice moves out of their lows, and now it looks like it may be the moment of truth. Time to see if it was just another bear market rally or could it be the start of something more?
WTIC - From the weekend report. I had been expecting the 200sma to offer resistance and a quick dip lower.
There are a couple of other factors in play that I am watching too at this point.
Lets Look At The Big Picture
Every now and then I like to step back for the weekend report and take a look at the Big Picture. I have been reporting for months that I see big picture changes in many sectors starting to take shape. Lets see if they are advancing or falling apart.
The SPX is approaching resistance. Will it halt the rise, or possibly just give it a pause like we saw in 2011?
Lets look for some clues...
Base Jumping
In the premium reports, we've been looking at bullish bases in the Energy and Precious Metals sector lately . Very quickly they are jumping making some strong moves %-wise. Explosive gains actually.
For example, this was SGY when I pointed it out. It ran from $4 to $7 in August/September and then pulled back after hitting resistance at the 50sma, forming an inverse H&S. When it broke above the 50sma , it was a buy around $6.
SGY - 3 days later and it is nearing $10. Thats $4 to $10 in about 1 month.
EXXI is up 150% in 7 days!
These are obviously getting extended and may be due for a pull back. That means that it is best to look at other bases that are currently set up, and try to front run some Base Jumping...
Running The Bases
We've been looking at bullish bases in the Energy and Precious Metals sector lately. Very quickly they have been making some strong moves. Explosive gains actually.
For example, this was SGY when I pointed it out. It ran from $4 to $7 in August/September and then pulled back after hitting resistance at the 50sma, forming an inverse H&S. When it broke above the 50sma , it was a buy around $6.
SGY - 3 days later and it is nearing $10. Thats $4 to $10 in about 1 month.
EXXI is up 150% in 7 days!
These are obviously getting extended and may be due for a pull back. That means that it is best to look at other bases that are currently set up, but not extended...
The Ups And Downs…
The saying , "What goes up must come down" is true within Bull and Bear markets. Lets take a look at what is going up and what is likely to come back down, keeping in mind that the FED MINUTES are to be released later today.
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I drew this last week to show that I expected the SPX to move up to the purple line
Gusher
The Oil and Energy Stocks were leading the way with their recent bullish activity. As pointed out yesterday, the XLE broke out from a downtrend and was probably signaling that OIL was about to follow. Quite a few of the stocks were up 20 - 30% in 1 day yesterday! We'll discuss more about the potential here in a moment, but first lets review the rest of the market action.
SPX- Resistance is overhead. A pause below the 50 sma may be building energy to break higher, and a break above could see buyers rush in and push it higher.
