The Bigger Picture (Weekly Market Update): Jan 15, '12

The indices suffered small losses on Friday but still ended the week with gains of just under 1%. The bulls still have their noses in front, but is this move losing momentum?

S&P-500 index daily chart:

The bears just can't catch a break. SPX was trading back in the old resistance zone, during the day, on Friday, when the index was showing a loss of as much as 18pts. There was a recovery by the close, however, and the index was able to close above the important 1285-level, finishing with a loss of just 6pts (0.5%). The upper Bollinger band is rising and RSI has stayed above the 60-line, so the bulls still have their noses just in front. That should remain the case, until/unless the index falls below its 20dMA.

Dow Jones Industrials Average daily chart:

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Market Update: Jan 12, '12

Markets close with small gains. Bulls still in control.

S&P-500 Large Cap Index

SPX gained 3pts (0.2%), after once again spending time below the flat line for a good portion of the day. It's not a big deal though. It's still looking like it's gonna be a slow and steady trudge upwards. The upper Bollinger band has risen further and now sits at 1313 (nearly 1.5% above today's closing level). There's lots of room to the upside on RSI and MACD as well. Barring a failure to remain above the October highs (1285), there's nothing that should trouble the bulls until the 1345-65 range is attained.

Dow Jones Industrial Average

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Market Update: Jan 11, '12

Indices close virtually unchanged. No big change in the technical picture. Bulls still have their noses in front.

S&P-500 Large Cap Index

SPX closed unchanged, after trading below the flat line for most of the day. No big changes, as far as the technicals are concerned. The upper Bollinger band is still rising, RSI is above resistance and MACD still has lots of room to maneuver. No trouble in sight for the bulls, as long they're able to keep the index above the resistance zone.

Dow Jones Industrial Average

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Market Update: Jan 10, '12

And the bulls have done it!

S&P-500 Large Cap Index

SPX gained 11pts (0.9%), today. In the process, the index has broken intermediate resistance (derived from the October highs). The index has also broken resistance at the 60-line on RSI. All in all, it was a good day for the bulls. The key now is for the index to remain above 1285 and, if it can do so, we should soon see a retesting of last year's highs in the 1345-1365 area.

Dow Jones Industrials Average

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Market Update: Jan 9, '12

The indices continue to be challenged by resistance. It's do or die time for the bulls.

S&P-500 Large Cap Index

SPX gained 3pts (0.2%), today. The index has traded mostly within a tight range of 15pts, for the past five sessions, as resistance from the October highs near 1285 and from the 60-line on RSI is tested. The bulls will take heart from the fact that the upper Bollinger band continues to rise; the upper band sits at 1298 (a good 18pts above today's closing level), at the moment, and is rising at the rate of 2-3pts per day.

If resistance at ~1285 can be taken out, a surge towards the intermediate/major trend resistance in the 1345-1365 range will take place. In the meantime, watch out for any dip back below the 1265-mark, which needs to serve as support in order for the bull case to be bolstered.

Dow Jones Industrial Average

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The Bigger Picture (Weekly Market Update): Jan 8, '12

There's been some good news for the bulls over the past few sessions and, if they're able to turn up the heat, we could even see an intermediate trend rally in the first part of 2012. Let's see if that happens though; there have been many false starts over the past few months.

S&P-500 index daily chart:

SPX has broken resistance at 1265. The next big resistance level is nearby. If the index can break above that level (1285), we could see the index make a quick move to intermediate/major resistance at 1345-1365, over the course of next month or two.

The upper Bollinger band is now rising and that opens up a potential pathway for a gathering of momentum to the upside. Volume is back, after the Xmas week lull, as well. Resistance at the 60-line on RSI still hasn't been broken. The bulls will want to put paid to that quickly. A failure to do so will mean that a test of the 20dMA is nigh.

Dow Jones Industrials Average daily chart:

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Upper Bollinger Band (Weekly Chart) Set to Challenge Bullish Trend

We are initiating a new 'Chart In Focus,' today. The markets have had a good run, over the past couple of weeks. The Nasdaq-100 and the S&P-500 have even broken out of inverted head & shoulders patterns that are calling for a continuation in the rally. However, nothing comes easy, it seems. As the markets have rallied, the upper Bollinger bands on the weekly charts have slowly but surely started to fall. The rate of descent has been rather rapid, so much so that the indices are now confronted with the bands.

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The Four-headed Monster, Called 'Technical Analysis' (Part 4 of 4)

This is Part 4 of a 4-part series that briefly describes the benefits of using technical analysis in making investment decisions. A case study format is utilized. In this part, we wrap up the discussion with a look at current market action.

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The Four-headed Monster, Called 'Technical Analysis' (Part 3 of 4)

This is Part 3 of a 4-part series that briefly describes the benefits of using technical analysis in making investment decisions. A case study format is utilized. In this part, we touch upon the utility of 'Moving Averages' and 'Price Envelopes' and the importance of a holistic approach to Technical Analysis.

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The Four-headed Monster, Called 'Technical Analysis' (Part 2 of 4)

This is Part 2 of a 4-part series that briefly describes the benefits of using technical analysis in making investment decisions. A case study format is utilized. In this part, we hone in on 'trend analysis' and 'momentum indicators'.

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