Much of this year I've had an interest in W4500's 1015 level. With the continued weakness in the small caps, we're visiting this level once again and this time it might be in conjunction with the 1-year trendline. For the upside (at a minimum) I'd like to see 1030 revisited.
With the hourly chart, we can see that in the short-term (just below 1015 & the 1-yr trendline) we've formed a small V-Bottom. I'd like to see a break above
Looking at the Bollinger Bands, you may have noticed prices are compressed & coiled across both the Transports & S&P 500. When this trading range gets broken, I'll be looking for price volatility to increase and expand.
1985 is a key level to watch, when you remove time from the equation (using PnF) we can see we have both a double top & double bottom.
Best of trades...Jason
Stocks moved lower again yesterday, as the pullback off of Friday's negative reversal day continues. The Dow lost 117-points (0.7%), while S&P 500 and international stocks fell about 0.6%, and bonds gained 0.14%.
Stocks opened lower on Monday and couldn't catch a bid selling off slowly all day. The Dow lost 107-points and small caps continued to lag as the Russell 2000 fell below the 200 moving average again.
I'm a buyer at these levels, right here, right now. If I weren't already invested, then I'd be taking an entry tomorrow. One of my better systems triggered a buy signal today, during a bull market, it generally only triggers 3-4 buys a year and I've been a fool every time I've neglected it.
To put some perspective on this, the number of NYSE stocks at a new 52-Week low, is at a 13-Month high.
Best of trades....Jason