Stock Charts: The Market Bounces Back

$SPX 60 minute: The market reversed most of yesterday’s decline. On the intraday chart we need to slightly redraw the channel lines. This is one of the more frustrating things about using channels, they often get redrawn. The up move is still intact because we did not trade below 1,155 or close the gap. The other thing that’s important is the MACD has drifted lower while price has remained strong. We see this often in time frame indifference when longer times frames are dominant, which is the case currently.

$SPX Daily: The market is still over bought and still being held in check by the middle pitchfork line and still looks like an ABC wave up. However, we could still see price trade higher against the middle pitchfork.  That target is roughly 1,195 which matches the middle channel line on the 60 minute time frame.

$SPX Weekly: The weekly MACD is trending higher which is bulldozing the intraday chart in time frame indifference. The weekly chart looks like price wants to trade to or very close to the 200 day MA or again 1,195, which also coincides with the middle pitchfork and the middle channel line. We could easily this happen over the next several days and maybe top out sometime next week. That’s the way it looks currently.

IBM:  Not the most bullish looking candlestick today.  MACD has crossed and heading lower.

JNK: Still looks like another push higher from a little sideways move.

$VIX: This has to be the most frustrating indicators for bulls and bears. It’s just not throwing a signal yet, it continues the bipolar bouncing back and forth.

XLF: Speaking of bipolar. It’s still bouncing in No Man’s Land between the Bollinger Bands, and the 50 and 200 day MA.

$COMPQ: Grinding on top of support.

My Watch List


GOLD: Stock made a little inside day and still below the lower Bollinger Band and sitting on the 50 day MA. MACD heading lower decisively and none of that looks bullish.

NEM: This one is grinding back and forth in a downward fashion. Not as bearish looking as GOLD.  Below the uptrend line is more bearish.

GLL: No follow through today. We still have bearish divergences and the MACD has turned up. A more bullish sign is a break above the down trend line.  Volume on today's down day was very thin.  Big volume up day and tiny volume down day, maybe the buying interest is back.  We could get one more push lower though to finish this leg.

NKE: Like many of the potentially bearish trades, maybe another push higher. It needs to move below a prior minor low and cover a gap to gain in the bearish trading view.

COH: Up day but finished with a tail, really nothing has really changed in the past week or so.

OSIS: This thing could do anything. Maybe another push higher is needed.

From My Trading Desk:  We had no trades today.  Just waiting for the market to show a more convincing top and for individual trades to break down on the bearish trade.

Happy Trading

J.D. Rosendahl, Rosey