A stock index chart is an important tool in a trader’s arsenal. This visual display of historical trends of the US market indexes provides a clear picture of where prices are headed. The charts are updated each Friday evening and are available to members. PRO members have access to complete versions of these charts. Non-PRO members can view data from 1980 until today. Traders can also view historical trendlines to identify support and resistance. The Dow Jones Industrial Average closed below the rising 50-day EMA and has since dropped to a test of the 200-day EMA. It has not reclaimed this support, however, because bearish daily technical indicators are signaling that the support level is not going to hold. The MACD has crossed above its signal line, but remains in negative territory. The RSI has also failed to cross its 50-day EMA and is headed downward. Similarly, slow stochastic has crossed its 50% level into bullish territory, and a break of this resistance level is a good sign of further decline in the index. The DJIA represents nearly one-fourth of […]
After a massive run-up going into this morning’s job number, the market was certainly set up for a selloff, and when the number came out (which was AWFUL), we certainly got a selloff…sort of. The market started the day with a gap, tried to bounce a bit, but then quickly sold off further. That was about it, however, and around 11:15, a bottom was put in for the day and the market rallied strongly from there, finishing well off of its lows. Although the final numbers will show decent sized losses, in my opinion today was a very impressive showing by the bulls. Remember as well that this was in the face of an AWFUL jobs number… I went into the day short two stocks (SOHU and BEXP) and long only one stock. I was stopped out of both shorts by lunchtime and began to go long again in force as I saw setups I liked all over the place. This may be the wrong play as perhaps the market needs to pullback further from here, but given the action […]