SP500 Targeting 3720

The S&P 500 made couple attempts on its all time high last week but failed to reach it. Will the SP500 continue to move toward its all time high and put in a new high, or will it falter and retrace back toward the March 2020 low?

Stock Market Made Another Record High, Was That A TOP?

It is beginning to sound like a broken record, the stock market made another new record high this week. In this video, we will analyze the stock market indexes, the stock market sentiment indicators, and the stock market internals along with the stock market indexes to see if a top has been made and where the stock market will be headed.

Not Much Has Changed

The market continues to provide trading opportunities for the short term traders. It essentially finished the week near where it started and not much has changed.

Stocks & Market Outlook - 6/13/2015

Last week, the market attempted to rally back to previous high after printing a bottom doji candle. After couple up days, it stalled and printed a shooting star candle that set up an evening star candle pattern with Friday's price action. Depends on the depth of the next pullback, the market could be in jeopardy on holding above recent support level.

In this video, we will look at some of those key levels for the market to hold and to reclaim. In addition, we will look at some of the MOMO stocks and attempt to identify some of the levels to watch for the coming week. The stocks that will be reviewed in this video are AAPL, FB, TWTR, BABA, NFLX, AMZN, GOOGL, TSLA & GPRO.

Market Continues To Gyrate

The market continues to frustrate the longs and the shorts as it gyrates its way to set up for the next move. Below are the charts of the indices and some commentary on what the price action might be telling us.

Market Review - 5/17/2015

The SP500 and the New York Stock Exchange Composite index closed at a new all time closing high. The Dow Jones Industrial is near its all time closing high.

Stock Market & MOMO Stocks Review - 3/21/2015

Last week, the market moved back above the December pivot high and the Russell 2000 continues to make new all time high. The NASDAQ Composite almost tagged the dotcom bubble closing high, and AAPL made its debut on Thursday as a component of the Dow Jones Industrial Average.

Market Update - 12/14/2014

Here is a video update on the market indices along with JNK & HYG. The market has once again entered into a corrective phase as it had alerted us in early December, and one should continue to be cautious.

Stock Market Outlook - 5/11/2014

The market continues to send out mixed messages. The DJIA closed at a new all time high on Friday, while all the other major market indices failed to follow. Lot of debates around the divergence between the large cap/value stocks and the small cap/growth stocks. Until the market send us a clear signal on its direction, it would be prudent to keep our positions light and tight. Again, cash is a position and the sideline might not be a bad place to be while we wait for the message from the market.

Stock Market Outlook - 1/31/2014

The first month of the New Year has come to an end and the market ended the month of January on a negative note. Every time the market goes down in the coming days or weeks, you will hear those talking heads talking about those January effect correlation and reminding everyone how 2014 will likely be a down year, etc, etc. All I can say as a trader is one should be trading the market base on price actions not how the year will end. In regardless if the market is in a down trend or an uptrend, there will be rally and sell off. Therefore, trade according to the price actions and what is in front of you.

Stock Market Outlook - 1/25/2014

The market finally gave us the long awaited pull back. But is this simply a pullback, or is it a major trend reversal? No one really knows until it has happened. The only thing one can do at the present is to identify price levels where buyers or sellers might exert their control. When these levels are reached, one can then assess the possible direction of the market based on the resulting price action.

Stock Market Outlook - 1/12/2014

A look at possible price levels for the market indices and their respective ETF: IYT, DIA, SPY, QQQ & IWM.

Getting Nervous

The DJIA closed up once again, and that mean it made another new all time high. One would think the market technicians are celebrating with joy and holiday cheers. Well, maybe those technicians that only watch the stock charts and pay little or no attention to the market breadth are celebrating. Those that are the true student of the market are probably getting a bit nervous. Here are some of the things that cause these market technicians to be nervous: 1) non-confirmed DJIA new high, 2) down volume greater than up volume, 3) declining issues outnumbered advance issues, 4) less than 200 issues made new 52 week high, 5) issues made new 52 week high nearly equal to number of issues made new 52 week low. Notice these are all market breadth, not a derivative of the price, i.e. RSI, moving average, etc.

Rerun Once Again

It’s just like watching a rerun on TV because we have seen this picture before; the DJIA makes a new all time high along with the SP500 but without the Nasdaq 100 and the Russell 2000 making a new high, and no confirmation from the Dow Theory.

Nothing Has Changed

The market ventured into another record high territory on Thanksgiving eve. All the major market indices closed at record high territory with DJIA, SP500, DJT and Russell 2000 at new all time high, while the Nasdaq 100 at new multi-year high. Nothing has really changed.

It Doesn't Make It Easy

The market is not making it easy for the bulls or for the bears as it continues to make record high. Just in the previous session, the DJIA made a new all time high with confirmation from the DJT and the bulls see it as coast is clear for higher high. Then today, the DJIA making another new all time high by a slim margin of 0.30 with the DJT failed to close with a new high, and that gave the bears something to smile on. But before the bulls move to the sideline or the bears starting a field day, the Russell 2000 said not so fast. The small cap Russell 2000 closed with a new all time high that surpassed the previous high by more than 1% or 12.40, and to cast more confusion into this picture, the tech heavy Nasdaq 100 also closed with another new multi-year high and showing improved market breadth. So what should one do?

It Doesn't Care

The market doesn't care what all those people are saying about how extended it is. The DJIA continues to hit new all time high, even with repeated Dow Theory non-confirmation and negative market breadth. As history has shown, the market will frustrate those that are trying to call the top and/or waiting for the correction. When these non-believers rush onto a running train that is when the market will do what they were expecting the market to do. Until then, trade what you see and not what you believe (I know, you heard this many times before, but are you doing it?) One more thing, 'do not chase the market or the stocks.'

Nothing Has Changed

Although the DJIA made another new all time high and closed above the 16,000 level for the very first time, the other market indices really have not change their character. The picture from the chart below is nothing new, we have seen this before.

When Will This Stop?

Just when the market flashes a sign it is getting ready to take a rest, it re-energize like the energizer bunny and zoom to another new all time high for the DJIA, DJT, and SP500 along with the Nasdaq 100 making a new multi-years high. The only index that did not make a new high was the Russell 2000. While the market indices made new high, the internal market breadth continues to deteriorate, so when will this stop? The answer might appear when euphoric/panic buying occurs. Until then, pick your stocks, manage your risk, and trade your plan.

Here are the charts of the internal market breadth for the NYSE and the NASDAQ.

State Of Confusion

As the DJIA continues to make new all time high without the participation from other market indices, the market is generating a state of confusion.