This move certainly isn’t a strong trend up. A four day retrace is not a good sign - but not the end of the world. The chart from the October 10th low shows somewhat of a cup-with-handle formation. Today was inside the second day of the retrace on lower volume. While not bullish, it does setup a bullish thrust (if that is what the market wants to do).
The put-call metric discussed by Helene Meisler a couple weeks ago remains above the 1.05 level which has started a rally in the past. This 60 day moving average can continue higher for some period of time which doesn’t make this a good timing signal.
The number of new lows on the Nasdaq remains relatively low during this retrace of price.
Charts courtesy of Stockcharts.com
Tags: Cup with Handle · Market Internals · Standard and Poor's 500 (SP500) · Swing Charts2 Comments
2 responses so far ↓
First scenario–1) In wave 4 we are in wave (D), and in D we are in a 4th wave(why volitility is crazy), we still need to do the 5th wave of “D”, to complete that takes us to S&P 865 -880 have support line hitting 880 area, then we go up for wave E , and that will take us back to 920 area, then we fall, and of course all of that could happen today, or take a few days, but I do have today as a turn day, would say that could be to the upside by late late today…..futures are currently down at 8:09am est. Oh 200 day moving ave. acting as heavy support line in this triangle, be very careful trading this 4th waves like to mangle their prey and with options expiration, a full moon and GM ready to close their doors . May the “Fork be with You”…..Oh and Fork, I think that you could run your fork off the bottom support, and it would give you most of the downside support levels on the bear market side….running your fork on top support seems like that is perfect bull side of things, I have to tell ya though Fork , I have used alot of forks in my life, especially shoveling Sh-t out of barns, but I never thought I’d see forks shoveling the S&P and Dow around…LOL! I caught your site awhile ago, never really understood what you where up too till now, but I do think they need to go bottom for bear, top for bull, but hey I think your on to something and like I said before, I like that Fork Critter mascot.!! Have a great trading day everyone….Nighty night I’ll dream of Forks today….
Oh forgot, my outlook has changed, now I think we fall of course as soon as the “E”, wave ends, we go down into final 5th wave, and I think it will have some momentum to it, but the psychology is starting to change, and the bull side is coming out in alot of the traders, basically they are sick and fed up being in a bear market, and want some upside. Cnbc, and bloomberg both have been chatting with everyone calling for bull rally for over a week now, so once this 5th wave finishes, I am looking for one heck of a bull move for several months. Just about the time we bears like to hybernate…..LOL! Later…:)