Will Gold Hold This Confluence of Support?
When different technical analysis tools all coalesce on one particular price level, this is what we call a "confluence of support." Connie Brown stressed the value of using different technical indicators based on different inputs. When these indicators agree on a particular signal or level, that’s should be a higher conviction signal to consider.
Charting the Great Rotation of 2023
Growth stocks that pushed the S&P 500 and Nasdaq higher through July 2023 have now started to rotate lower, with MSFT AAPL and now the QQQ breaking below the 50-day moving average. What sectors are starting to work, and how can we use technical analysis tools to best illustrate this great rotation?
What Is The McClellan Oscillator? | August 2023 Update
The McClellan Oscillator is a market breadth indicator that uses advance-decline data to gauge price momentum. This classic technical analysis technique can help validate what you see on the chart of the S&P 500 or Nasdaq, and this week it generated a key bearish signal! We'll break down the construction of this technical indicator, and talk about downside potential for the SPX given this bearish reversal.
Key Market Breadth Indicator Turns Bearish For QQQ
The Bullish Percent Indexes are market breadth indicators based on point & figure charts. Today we'll share the Bullish Percent Index for the Nasdaq 100, and show how a recent bearish signal is similar to previous pullbacks in 2023 and 2022.
Will FAANGs Hold Their 50-Day Moving Averages?
The dominance of mega cap growth stocks like MSFT, AAPL, AMZN, NFLX, and GOOGL has been the story of 2023. Are these FAANG stocks due for a pullback, and if so, will they hold support at the 50-day moving average?
Why Use Exponential Moving Averages?
I’ve often found that for me and my process, systematic trading models are more of an input than an output. That is, I’m not a fan of completely outsourcing investment decisions to a model-based approach. However, I do see the value of having a systematic model to use as the foundation for a discretionary process built on technical analysis.
Fibonacci Retracements and Bullish Gold
Gold has had a rough six months, with the gold ETF (GLD) dropping 20% since peaking in August 2020. While many consider gold to be an inflation hedge, concerns about increased inflation have not manifested themselves in higher gold prices.
Improving New Highs Would Validate Further Upside
The S&P 500 wrapped a rather volatile week by settling in at the upper end of the 3200-3600 range. One key breadth indicator shows clear similarities to the bull run in early October, and also provides a prescription for bulls looking for validation of further upside.
Three Takes on the Presidential Cycle
This past Monday, I asked three experts on the Presidential Cycle - Bruce Fraser, Jeff Hirsch, and Tom McClellan - to share their take on market trends around the election season. They delivered in a big way, and the result was a masterclass in how to learn from market history.
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