Waiting For Confirmation

Although the market ended another week with a gain, but the market did it with a lot of uncertainties. In the intraday chart, signals are being flashed by some broad market indices warning of an impending price trend change and other market indices continue to march higher. In the daily price chart, incomplete bearish price patterns temper the bullishness. And the weekly price charts show the uptrend price channel started in March 2009 remain intact.

It is moment like this that the traders must look at the technical from multiple time frames to get a complete picture (if multiple time frames are not part of the routine review). In my recent post on my blog, I have pointed out some of the bearish signs from my review of the intraday and daily price charts, and in this post I will present my review on the weekly price chart.

The market based on the weekly chart still appear to be on the upward trend, but I am still in the mildly bearish side due to conflicting signals from the intraday and daily price charts. I will be completely bearish when the market gives me a full confirmation it is heading down. If the market takes out those potential bearish price patterns that I am monitoring, then I will revert back to the bullish camp.

Here are the weekly charts showing potential target level from previous bullish pattern formations. Be careful on interpreting the measured move projections. I normally consider a projected move have attained its target if it has made 85% of its measured move. In other word, I don’t necessary wait for the price to reach the projected price level before I terminate the pattern if there are conflicting technical.


DJI:




SP500:



Nasdaq 100:



Russell 2000: