A Holding Pattern

Historically, the day after Memorial Day has been good for Dow Jones Industrial Averages. It was up 21 out of last 29 years. Now make that out of 30 years. After a big week it was expected for the market to take a breather, even though the pre-open bias was still to the upside. However,…

Market Diary – Tuesday, May 31, 2016

Directional Bias For The Day: Odds are good for the market to follow through after last week’s big gain and Friday’s late breakout above an ascending triangle Europe may be a drag based upon the economic reports, its stock markets’ performance for the week and because of the uncertainty before the ECB’s rate-decision on Thursday Watch the opening range…

Happy Days Are Here Again!

For most of this week we have been highlighting various bullish patterns emerging in S&P 500 on different timeframes. So far, breakouts from most of these patterns have confirmed their initial bullish intent. After Monday May 23, 2016, we commented on the emerging bullish flag on the daily charts. That day, the market was mostly range bound but still, many…

Market Diary – Friday, May 27, 2016

Directional Bias For The Day: Odds are high for the market to stay in a trading range A breakout to the upside is possible if futures break above 2094.00 (S&P futures) A break down is less likely but if futures drop below 2084.00 then all bets are off Watch the opening range and first hour of trading for clues Preliminary…

Knock! Knock! Knocking On Heavens Door

Wednesday, May 25th, 2016, was a big trend day for the S&P 500 following the breakout from a bullish flag a day before. Week before, on Thursday May 19th, the index had made a bullish hammer. Then it consolidated for couple of days. Then on Tuesday May 24th, it formed a large upside range day followed by a breakout the…

Market Diary – Thursday, May 26, 2016

Directional Bias For The Day: Odds are higher for the market to stay in a trading range A break of 2092.00 (S&P futures) to the upside may take the it to April high A break below 2080.25 may put it back within the trading range in which it stayed since April 29th. Watch the opening range and first hour of trading…

Got Stuck In A Trading Range

We noticed after Tuesday, May 24th, 2016 session that the S&P 500, and other indices, broke out of a bullish-flag pattern. The follow-up to this breakout on Wednesday was quite good. The market opened on the upside and then moved higher, eventually closing strong. For the day, S&P 500 gained 14.48 and Dow Jones Industrial Averages gained 145.46. But…

Major Indices Breaking Out

We have been mentioning for the last few days that market is poised for a bounce. We first covered it after the release of Fed minutes when the market took a dive but the bears could not sustain it. Then we elaborated the emerging bullish flag formation after NYSE session close on Monday May 23rd, 2016. We then…

Market Diary – Wednesday, May 25, 2016

Directional Bias For The Day: To the upside Before NYSE Session Open Yesterday: All major indices closed up strong and broke out of their respective consolidation pattern to the upside. This bodes quite well for a rally – at least for a while. Resistance levels from the 2015 and 2016 high still loom ahead that may dampen the…