Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, November 7, 2014

Midday Chart Update

Stock Market Technical Analysis

click on image to enlarge

After two days of a tight tractor program running on the SPY, the S&P has inched across its primary resistance lines as can be seen in the chart clusters below.  We could have the very beginning of a breakout in the S&P.  The biggest hindrance to this is that Wall Street's trading algorithms have been steadily downshifting for the past week and a half which indicates just the opposite, that a pullback may be imminent.  This downshift can be seen in the Advance Decline chart above with the red declining line.  

Also,  I have the S&P, NASDAQ, and Russell 2000 in the three lower charts above with our swing trade EMAs applied.  While there have been several close calls at resistance levels, the red line on the S&P has held and not down crossed at every juncture all the way up keeping us in the trade.  Additionally, with the tractor program on the SPY the past  2.5 days, the S&P (SPY) trade is still looking safe.  The NASDAQ and Russell 2000, however, have been trying to down cross all week and nearly did a couple of times putting them on shaky ground.   The Russell 2000 led the lift off the bottom and is expected to lead the rollover whenever it happens.  

Today being a Friday, rather a "float up Friday", where the volume is low and drifts to anemic in the afternoon which is where Team Yellen has been coming in and have made good progress because basically they don't have any resistance since most professional traders call it a week at noon on Friday.  We will be watching closely this afternoon to see if the low volume float up starts to happen and causes the trading algorithms to reverse on the Advance  Decline and break up out of that declining red trend line they have been working.

Trade well my friends


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