MONDAY MAY 12
Good Morning TRADERS! Last week the daily SP filled out railroad tracks (one candle up one candle down one candle up…etc.etc) Typical type of
consolidation after 7 consecutive low to high days. The TP reading on the trade sheet (indicates trend) has now wound down to the lowest reading all year.
The 2-period ROC has been losing its swings as well. Early indication of a decent breakout can come from watching the DAX in the overnight session as it
too is tightly coiled, and of course, confirmation would need to come from the Russell. The Russell has been in a downtrend but found support last week on
a test of the lows. If the last hourly swing high is taken out, it can have an upside breakout from a down trending channel.
In the meantime, the DJ Utilities are quite overbought and the weekly charts have just turned down. The Bunds have a short term double top with a Sell
period ROC. The most impressive chart currently with upside potential is the Copper market. See the structure on the chart
examples above – it was very well bid on Friday and has several higher lows now on the intraday structure. Enough time has passed to have healed the damage
done at the beginning of March.
One last stellar chart example: MSFT has excellent daily Power Buy Structure….This is a sweet spot _ will the daily ABC lead to a push to new highs, or, if the
daily chart puts in a second lower high, the primary trend can turn back down. For now, see if the daily OSC can lead to more upside this week.
Market internals overall are neutral as is so often the case in the middle of a trading range!
Have great Week!