Stock Market Technical Analysis
click on above image to enlarge
Before we look at the three charts above I want to mention that whenever WallStreet as a group decides they are ready to reverse a downtrend and take the market up for a while they have a long history of signaling this with large "twin" block trades at the same hour of the same day on all the megastocks. This happened in the last few minutes of trading today, below is a list of just a few of the long side institutional entry markers:
Two INTC 1.3 million blocks
Two MSFT 1.1 million blocks
Two AMZN 109k blocks
Two AAPL 186k blocks
Two GOOG 171k blocks
Two XLF 105k blocks
In addition, the SPY had four blocks sent through together that are always sent through in these amounts exactly and are always back to back right before they take the market on an up leg for a while. These four marker trades are 4.74m, 2.5m, 500k, and 500k. Who knows what the reason is for the odd amounts but they have been a superb marker for when WallStreet has decided they are going to take the market up for a while.
Taking a look at the charts above, it is easy to see why Wall Street intends on moving the market up here. In the top chart the thirty minute bars chart of the UUP (Dollar Index), we see that with today's opening we gapped down a little but because of the technical anomaly of having a holiday blank space in the chart it shows us the gap down also took us down well inside the blue channel. Traders instantly sold the market and the UUP shot back up to back above the blue channel as traders do not consider a sideways move in a chart because of the holiday a valid double channel failure. On through mid day the UUP traded sideways on top of the blue channel until late in the day when it traded down into it not gapping down nor appearing down in it because of the blank space of a holiday trading day off. We could easily see a week or more of upward movement in the market if the UUP travels down towards the lower line of its blue channel. If that occurs, possibly 4-6 days out, the market should pause again as that will be a major decision point for WallStreet, hedgefund traders, and the broad trading community as we stop to decide if the UUP is truly going to drop down into the horizontal brown channel. It will be interesting to see what happens when we get to that juncture. If the UUP fails to drop down into the brown channel, we could have another down wave in the market later next week if the UUP tries to climb back to the top of its upper blue channel line again.
In the bottom left chart, the daily bars chart of the S&P 500 regained its three year brown line mother channel today after spending a week and a half building an ascending triangle pattern.
In the bottom right chart, the daily bars chart of AAPL we see a high quality day 5/10 layup powering up through the blue 20 and pink 50 EMA lines, a point where WallStreet goes in big on any stock.
While we will still be vulnerable to premarket smack downs from bad euro zone news and WallStreet has had market pushes where they have not been able to pull it off and ended up aborting, it is a most noteworthy situation to finally see them going into the market after letting it fall almost continuously for nearly a month with no real attempts to turn it around until now.
Alan
In the bottom left chart, the daily bars chart of the S&P 500 regained its three year brown line mother channel today after spending a week and a half building an ascending triangle pattern.
In the bottom right chart, the daily bars chart of AAPL we see a high quality day 5/10 layup powering up through the blue 20 and pink 50 EMA lines, a point where WallStreet goes in big on any stock.
While we will still be vulnerable to premarket smack downs from bad euro zone news and WallStreet has had market pushes where they have not been able to pull it off and ended up aborting, it is a most noteworthy situation to finally see them going into the market after letting it fall almost continuously for nearly a month with no real attempts to turn it around until now.
Alan
