We are still keeping an eye out for various signs in these markets. Lets take a look...

TRAN  - I posted this wdge as a warning in Monday nights report

$TRAN 9-23

TRAN -  There was some follow through. 

TRAN 9-22

The selling was  not on very heavy volume, so I am starting to think this move is going to drive longs and shorts crazy, here is why -

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Pulling Back

Our positions in the Miners are pulling back, but it is a slow pull back so far. This pullback  was expected. We'll discuss what to expect later in the report, but lets start with the pull back that came in the equity markets first.

SPX - It started with a shooting star and the stochastics indicate that we could see more downside.  In fact, I have mentioned that I expect a test of the 'high volume candle lows' sooner or later.

SPX 9-21  

The TRANNIES looked pretty strong re-gaining that 50sma, but they've done that before and a rising wedge is bearish. Notice the shooting star candles at past tops?

$TRAN 9-23  

OIL is playing out as expected too...

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Lets Check This Puppy Out

Lately things are playing out as expected, but it's always good to check this puppy out and see what is happening along the way. 

I didn't have a Friday report post Fed,  because I had 2 reports on Thursday.  Lets review charts and see how things played out.

My NASDAQ chart from Sept 16 -  Many were thinking that the markets were ready to rally to new highs after the Fed decision.  I saw a rising wedge and a lot of resistance.


NASDAQ Sept 17  ( Fed day)  Rejection at resistance.  This was saying to short the markets.


NASDAQ  - Friday Sept 18 , The day after the Fed Decision. This is still within that wedge, but that was a high volume drop and there is a lot more room to drop stochastic-wise.


This was the SPX on Thursday Sept 17.  Price was rejected

SPX 9-17 Read More