Market Update: Feb 9, '12

Another potential sell signal: Negative divergence on the Dow. No confirmed sell signals as yet. So still (very) cautiously bullish.

S&P-500 Large Cap Index

SPX gained 2pts (0.1%), at the end of another tight session. We'd be very surprised if RSI can stay at levels as high as these for much longer. At the very least, a short-term dip has to be around the corner.

Dow Jones Industrial Average

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Market Update: Feb 8, '12

Bulls definitely starting to push their luck. Highly overbought readings portend potential sharp short-term reversal.

S&P-500 Large Cap Index

SPX gained 3pts (0.2%), after trading in a tight 10-pt range around the flat line. The index continues to confront the long-term resistance zone between 1345 and 1365. RSI has reached the 75-mark: highly overbought, without doubt.

Dow Jones Industrial Average

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Market Update: Feb 7, '12

Bulls definitely starting to push their luck. Highly overbought readings portend potential sharp short-term reversal.

S&P-500 Large Cap Index

SPX traded within a similar range to the one it traded in yesterday, before closing slightly higher. Overbought conditions persist. There are still no bonafide sell signals on this index, yet caution needs to be maintained, given the levels RSI and MACD have reached.

Dow Jones Industrial Average

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Market Update: Feb 6, '12

It's time to be a little cautious. A bearish reversal could be on the cards. Potential sell signals cropping up.

S&P-500 Large Cap Index

SPX traded in slightly negative territory for most of the day, before climbing back up to the flat line, at the close. The index continues to show some signs of being overbought (and yet no sell signals exist).

Dow Jones Industrial Average

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The Bigger Picture (Weekly Market Update): Feb 5, '12

SPX and INDU set to challenge major resistance, in the coming week.

S&P-500 index daily chart:

SPX gained a decent 19pts (1.5%), on Friday. That was an impressive move both in isolation but also within the bigger picture. It was starting to look like a minor correction was afoot, until Friday's move. But now the upper Bollinger band has been pushed upwards and that opens up more room to the upside. RSI has moved into overbought territory though and will need to be kept an eye on. The bulls should be feeling quite comfortable, however, because there are no sell signals on the chart, at present.

Dow Jones Industrials Average daily chart:

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Market Update: Feb 2, '12

Retesting highs.

S&P-500 Large Cap Index

 

SPX traded within a very tight range and closed with a miniscule gain of 1pt (0.1%), today. The upper band has possibly started to rise again but at a very slow clip. Furthermore, there is the potential for a negative divergence on RSI and on MACD, if resistance is found just above the most recent high.

Dow Jones Industrial Average

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Market Update: Feb 1, '12

Minor correction complete?

S&P-500 Large Cap Index

SPX gained 12pts (0.9%), today. Interestingly, the upper Bollinger band might have started to point upwards again. A rise in the upper band is absolutely crucial, if the index is to eke out further gains immediately. The index tested the recent highs, intraday. Tomorrow's session could be crucial in determining whether the bull run is ongoing or complete; the trend in the upper band will be our primary focus.

Dow Jones Industrial Average

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Market Update: Jan 31, '12

Minor correction presumably ongoing.

S&P-500 Large Cap Index

SPX closed unchanged, after opening in positive territory and moving into negative territory, later in the day. The upper Bollinger has remained flat for the better part of a week and we can now expect it to provide resistance, if there is a move to the upside, over the next couple of sessions. In fact, there is reason to believe that a breaking of the 20dMA might be nigh. If so, we'd expect the index to fall to its lower band (currently 1269), over the ensuing week or two. Note that there is now a negative MA crossover (preliminary sell signal) on MACD.

Dow Jones Industrial Average

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Market Update: Jan 30, '12

Indices recover after testing 20dMA intraday.

S&P-500 Large Cap Index

SPX reversed course from a 16pt-drop to close with a loss of just 3pts (0.2%), today. It is evident that the 20dMA has supported the index for now. The question though is whether or not the minor correction that was expected is now complete or merely begun. (If the 20dMA is broken, the latter will be the more likely.)

Dow Jones Industrial Average

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The Bigger Picture (Weekly Market Update): Jan 29, '12

Negative divergence on INDU. Potential correction afoot, unless signal can be nullified.

S&P-500 index daily chart:

SPX lost 2pts (0.2%), after a tight session, on Friday. RSI has dipped out of overbought levels, which might be seen as a positive for the bulls for now, since it opens up some room on the upside, as far as that indicator is concerned. The upper Bollinger band has flattened a bit, at the end of the week; it won't be a problem unless the band stays flat for several days in a row.

Dow Jones Industrials Average daily chart:

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