Stock Market Technical Analysis Blog
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In the market today we had the classic digestion day of Friday's huge gains, with the markets closing mixed between the indexes. There were two real stories behind the market today, the first was AAPL which ran up $18 today as shown in the top left thirty-minute bars chart. The reason for this run in AAPL can be seen in the daily bars chart of AAPL just below the thirty-minute bars chart. By Friday noon there was a visible ascending wedge pattern shown with the two red marks. Many people missed this bullish pattern because there was no bar for Thanksgiving Day, nonetheless, it is a powerful launching pattern for a big move up and today that is exactly what happened in AAPL.
The second reason the market held tight and didn't sell off today can be seen in the large 120-minute bars chart of the UUP shown at top right. In that chart you can see that on Friday we fell out of the UUP's steep uphill channel. Today it came back up and did the classic retest of the horizontal channel line and was pushed back down from it in the last hour. A very bullish sign for stocks.
Another bullish development can be seen in the bottom left corner chart of the top cluster, the daily of the XLF (large Financials ETF). In that chart we can see that with today's close we had the blue 20 starting to lift from the pink 50 and today's candle is a bullish hammer retest of the topside of both lines.
Looking at the lower cluster we see the continually rising market since the pivot to the bull side I called out Friday a week ago in the 11/16 blog.
All in all, we still look good for continuing to move higher.
The second reason the market held tight and didn't sell off today can be seen in the large 120-minute bars chart of the UUP shown at top right. In that chart you can see that on Friday we fell out of the UUP's steep uphill channel. Today it came back up and did the classic retest of the horizontal channel line and was pushed back down from it in the last hour. A very bullish sign for stocks.
Another bullish development can be seen in the bottom left corner chart of the top cluster, the daily of the XLF (large Financials ETF). In that chart we can see that with today's close we had the blue 20 starting to lift from the pink 50 and today's candle is a bullish hammer retest of the topside of both lines.
Looking at the lower cluster we see the continually rising market since the pivot to the bull side I called out Friday a week ago in the 11/16 blog.
All in all, we still look good for continuing to move higher.
Alan
