March 21, 2018

Playing a strong defense came in handy on Monday as the markets gapped down, sending the S&P 500 Index diving below its 50-dma at the open. Things got crazy today after the Fed raised interest rates by a quarter-point, triggering a sharp rally to the upside that gave out into the close as the major market indexes reversed to the downside. In the process, the S&P reversed... [more]

March 18, 2018

The driving market theme over the past week has been a test of support for the NASDAQ Composite and the S&P 500 Indexes. The NASDAQ is pulling into its 10-dma and approaching the top of its trendline breakout of last week in the 7438-39 price area, so the picture hasn’t changed all that much from that described in my Wednesday mid-week report. If the NASDAQ... [more]

March 14, 2018

After rallying for seven-straight days, the NASDAQ Composite Index reversed sharply yesterday on higher volume. Given that this was the epicenter of upside leadership as big-stock NASDAQ names rocketed over the past several days, the pullback is perhaps not surprising. The sell-off was blamed on more tariff talk, this time targeting China, and the sudden firing of Secretary of State... [more]

March 11, 2018

A strong jobs report on Friday sent the market rocketing, with the NASDAQ Composite Index gapping on a breakout to all-time highs. Surprisingly, volume was not rip-roaringly higher, coming in at less than 1% higher than Thursday’s levels. But a breakout is a breakout, and if it comes on even slightly higher and above-average volume, then it remains a bullish move, end of story.   ... [more]

March 7, 2018

This continues to be an environment that I believe favors active traders. As I wrote over the weekend, the market is in something of a chop zone where news can become a factor, as was the case this morning when the market gapped down on news that White House Chief Economic Adviser Gary Cohn was resigning. This creates opportunities for enterprising investors who use the volatility to their advantage,... [more]

March 4, 2018

The market has reached a chop zone where it has retraced roughly 50% of its sharp move up from the February 9th low, depending on which index you’re looking at. The NASDAQ Composite Index came close to retracing half of its prior rally, which by my reckoning would be down to the 7068 level. The index got as low as 7084.83 on Friday before rallying to close higher on lighter but at least... [more]

February 28, 2018

The market has reached what I would call muddy waters here as the strong-thrusting v-shaped rally off the lows of over two weeks ago starts to lose momentum. Yesterday all the major market indexes posted losses of more than -1.2% on higher volume, and followed up with similar declines today. The NASDAQ Composite Index posted its third distribution day since jacking sharply off the... [more]

February 25, 2018

A week full of soft closes, where the market started up in the morning and stalled to close down or well off its highs, ended on a more bullish note on Friday as all the major indexes achieved higher closing highs. The NASDAQ Composite Index led the charge with a 1.77% gain on slightly lighter volume.   ... [more]

February 21, 2018

The release of the Fed meeting minutes today set the market on fire, sending the Dow Jones Industrials Index up over 300 points on the day. But it didn’t take too long for the fire hoses to come out, and the fire was quickly put out. By the close, The Dow had pulled a big outside reversal to the downside on higher volume as it failed at its 50-dma. This would appear to be the end of the line for... [more]

February 18, 2018

After six straight up days coming right up from the lows of two Fridays ago, the NASDAQ Composite Index finally backed down on light volume Friday. At this stage we now want to see if and how it consolidates the prior reaction rally. This could occur on a pullback to and test of the 50-dma, or the index could simply hold tight sideways as the 50-dma catches up. Other alternatives,... [more]