After suffering a 27.35 point dip (-2.08%) on Friday, the S&P 500 closed at 1288.15. On a weekly basis, this large cap index was the only one out of three to close in the red…by 5.2 points, or 0.4%. More importantly, she’s on the verge of new lows for the year…not good for the bulls (though great for the bears). The line in the sand is 1274. That’s where (basically) the S&P 500 has made lows this month as well as January. Of course, the attack on that support level […]
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Are We Trending Yet?
February 29, 2008 in Technical Analysis
Option trading can be fun, exciting, and profitable, but it can be full of frustration and losses. Have you ever noticed how frustrating it is to see your stock bounce up and down everyday in a seemingly endless sideways pattern? Most of the time we can be so tired of a trade that by the time it really decides to move our direction, we have already jumped ship. Is there help? Can someone rescue us? Here comes J. Welles Wilder with his Average Directional Index (ADX). It is a great […]
The Fed cuts interest rates 50 bp
January 30, 2008 in General Information, Technical Analysis
The March NASDAQ 100 closed lower on Wednesday despite today’s 1/2% cut in interest rates by the Fed as it attempts to bolster the economy. Profit taking along with overriding fears of a possible economic recession led to the late-day sell off. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish despite today’s poor performance signaling that sideways to higher prices are possible near-term. Closes above last Friday’s high crossing at 1873.50 are needed to confirm that a short-term […]
Protected: Nice Reversal
November 14, 2007 in General Information, Technical Analysis
There is no excerpt because this is a protected post.