Stock Market Technical Analysis Blog
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In the last thirty minutes before the bell yesterday I tweeted that a strong setup on the Advance Decline had developed and today we saw the results of it with a big move up in the market.
- Chart 1 - Nasdaq: big move up today and established new uphill channel
- Chart 2 - VIX: dropped down into the stock friendly lower channel at the open today
- Chart 3 - VIX: the large EMA pushdown continues to send the VIX lower
- Chart 4 - AAPL: I was hoping for a large drop and reversal back up today to produce hammer candles on the week and day plus to get the pinpoint 5/324 retest bounce. They instead decided to just go ahead and launch the move at the open and rely upon the bullish double prong price pattern that completed prior to today as the accompanying driver. This is also a strong setup just not quite as strong as twin time view hammers. There is an advantage to this approach in that it causes the 5 EMA line to approach the 324 at a gradual angle which causes a more sustainable rally in the long run but not the multiday explosion like back on the Nov. 16th 5/324 bounce. If they let tomorrow basically be a sideways day then they will have themselves positioned to construct a dish pattern in the 5 EMA line itself which typically produces a much longer run than the 11/16 rally especially if the bottom of the dish curve makes pinpoint contact with the 324 which could happen tomorrow or maybe more likely the next day. A dish pattern in a small moving average implies a smooth gradual transition from mostly sellers to balanced buying and selling then to mostly buyers. After they have completed construction of this 5/324 double bottom setup they will have a much stronger hand in moving this market higher.