Stock Market Technical Analysis Blog
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Premarket this morning we got the September's Chicago PMI reading, a universal benchmark of the National economy and it came in at 49.7 which is the first reading below 50 since the dark days of 2009. Add to that yesterday's first quarter GDP revision from 1.7 to 1.3 and also trouble in the transports with the global economic activity barometer - FedEx - revealing a gloomy outlook last week and the same outlook from Caterpillar another global economic activity barometer. Plus the price of oil diving on the fears that a weaker economy will have a reduced demand for oil and all this together looks like we are starting to get the components for a perfect storm.
Two weeks ago when Bernanke released QE3 onto the market the initial reactions were just what he spoke which was to take the stock market higher. As the days went by a lot of people started to wonder why Bernanke took such extreme measures. Now it has become clear that he knew what was just around the corner, some economic readings that spell trouble for the economy.
Yesterday's market indexes 5/20 bounce shown last night and in the charts above failed to have any follow through today and sold down so much today that we are now once again at risk for a red/blue 5/20 down cross in AAPL, SPY, and the Nasdaq as shown in the lefts side charts above. Also shown above is the VXX where today's market sell back twisted last night's downward curved 5 EMA line back up to level with the green 10 putting the dreaded VXX 5/10 up cross back as a strong possibility.
Another notable item tonight shown on the right side charts above are the triangles visible in the 120 minute bars charts of the Nasdaq, SPY, and AAPL signaling a fast and strong move will happen soon in the broad market.
One more notable item is GOOG, a stock that has been the default receptor of market money the past two weeks as AAPL fell into its funk. In the past three night's we have seen ugly day candles as GOOG hit its upper channel line and at the closing today it had the classic "twin" institutional exit trade - two twin 144.45k block sells at 754.50. One major Wall Street firm has exited GOOG.
Since Bernanke has put his credibility on the line by actually voicing his intention to push the stock market higher you have to believe he will follow through one way or the other. Yet it cannot be ignored that the economy is walking on thin ice and it's pretty obvious Bernanke sees something coming that the rest of us can't.
Alan
Two weeks ago when Bernanke released QE3 onto the market the initial reactions were just what he spoke which was to take the stock market higher. As the days went by a lot of people started to wonder why Bernanke took such extreme measures. Now it has become clear that he knew what was just around the corner, some economic readings that spell trouble for the economy.
Yesterday's market indexes 5/20 bounce shown last night and in the charts above failed to have any follow through today and sold down so much today that we are now once again at risk for a red/blue 5/20 down cross in AAPL, SPY, and the Nasdaq as shown in the lefts side charts above. Also shown above is the VXX where today's market sell back twisted last night's downward curved 5 EMA line back up to level with the green 10 putting the dreaded VXX 5/10 up cross back as a strong possibility.
Another notable item tonight shown on the right side charts above are the triangles visible in the 120 minute bars charts of the Nasdaq, SPY, and AAPL signaling a fast and strong move will happen soon in the broad market.
One more notable item is GOOG, a stock that has been the default receptor of market money the past two weeks as AAPL fell into its funk. In the past three night's we have seen ugly day candles as GOOG hit its upper channel line and at the closing today it had the classic "twin" institutional exit trade - two twin 144.45k block sells at 754.50. One major Wall Street firm has exited GOOG.
Since Bernanke has put his credibility on the line by actually voicing his intention to push the stock market higher you have to believe he will follow through one way or the other. Yet it cannot be ignored that the economy is walking on thin ice and it's pretty obvious Bernanke sees something coming that the rest of us can't.
Alan
The AAPL cluster and big picture clusters are updated below:
Click on image to enlarge
Click on image to enlarge
Click on image to enlarge
