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The recent rise in the S&P 500 appears to have completed a bearish rising wedge on the 60 minute chart right at the confluence of major resistance levels on the daily chart. The 1420-1425 resistance zone should be watched closely for clues to the next important directional move. To continue reading please click here
Simple pattern and volume analysis suggest a potential bullish primary trend reversal in the Egyptian EG X30 Index. After prolonged bear markets, volume is often a key indication of recovery. Typically, a bear market doesn’t end until market participants are discouraged by losses and uninterested in equities. It is at this point that selling pressure is exhausted. When strong volume finally accompanies a move higher, [...]
While gold and other commodities have outperformed over the past decade, it may not be too late to invest in them. Based on the duration of prior long-term trends, it appears likely the bull market for commodities and commodity-linked assets will last at least another five years. As the dot com bubble burst at the turn of the millennium it marked [...]
Over the last 18 months U.S. equity markets have seen a rotation into defensive stocks. While this rotation typically coincides with bear markets for equities, it has this time coincided with a rally for the S&P 500. The index is up more than 7 percent since May 31, 2011. Meanwhile, the relationship between cyclical and [...]
The S&P 500 index has recently broken above its March and April highs, extending the rally that began at the end of 2011. During this time, the price of gold has declined, making lower highs, while the S&P has risen, making higher lows. More recently, the two have broken to the upside together, a sign the relationship between equities and gold has [...]
European stocks are now finding technical resistance following a surge that began earlier this summer. In the Aug. 29 edition of Technical Strategies {NSN M9J7IX6JIJV6<GO>} Paul Ciana noted that statistically the month of September brings with it a propensity for market declines and increased volatility. A number of technical observations suggest the Euro STOXX 50 index may face a test as summer draws to [...]
The month of September is notorious for large equity market declines and volatility. October is no picnic either. In 1929 the Dow Jones Industrial Average declined 9.7 percent in September, kicking off the October crash. In September 1930, the Dow fell almost 15 percent, and in 1931 about 31 percent. In September 1974, the Dow fell 9 percent, completing a fourmonth slide of 29 [...]
Recently there’s been an increase in correlation between gold and the S&P 500 index. While this may be partly explained by investor expectations for imminent stimulus from the U.S. Federal Reserve in the form of a third round of quantitative easing (QE), a breakdown of that correlation may be needed before the Fed undertakes action. Looking at the chart, at right, gold has been overlaid [...]
The Brazilian Bovespa has broken above its intermediate term resistance of 57,071 as of the close of trading on Aug. 10, according to three TAS Professional indicators. The move confirms the slight break of resistance the prior week and the bullish signal from the TAS Pro Navigator. The top chart also shows a double distribution of volume over the last five [...]
Apple Inc is in danger of becoming such a large portion of the Standard & Poor’s 500 Index that some asset managers may be forced to sell shares due to concentration rules they employ. Apple may soon make up more than 5 percent of the market capitalization of the benchmark U.S. stock index, if the computer maker continues to appreciate at a [...]
