Technical analysis, or charting, is the art and science of graphing past price movements of an asset in attempt to divine their next moves. In a world of sophisticated financial analysis and correlations between various arcane assets, charting is often dismissed as voodoo. Despite claims to the contrary, it's a dirty truth of Wall Street that everyone analyzes charts.
The June crude oil market rallied every day last week. The market put in higher lows and higher highs on a daily basis after it tested the support trendline (#3 on the chart) last week on Monday morning. Any technical trader would say last week had all of the necessary ingredients for a bull run.
Crude oil [May contract] closed higher on Monday as it consolidated some of last week's decline. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.
Tuesday, September 27, 2011 Stock Market Direction
•The market turned gains of at least 2.8% each on the major indexes into minimum profits of only 1.1% as stocks gave back more than half of their intra-day returns.
•The major indexes closed below their intra-day session mid-points.
•Even so the support/resistance levels on the SP 500 did rise from 1,154 to 1,173 and from 1,165 to 1,183.
Monday, September 26, 2011 Stock Market Direction
•Stocks bounced between gains and losses early in today's session but by the close the major indexes rose at least 1.4% each.
•SP 500 support/resistance moved up from 1,130 to 1,154 and 1,150 to 1,165.
•Support/resistance on the Nasdaq Composite rose to 2,483 from 2,470 and 2,536 from 2,483.
•SP 500 and Nasdaq Composite remain below their moving averages (21, 50, 200).
Friday, September 23, 2011 Stock Market Direction
•After yesterday's brutal sell-off stocks rose with the indices gaining at least 0.4% today palpable to the prior session's losses.
•The broader SP 500 support level moved up slightly from 1,128 to 1,130 while resistance remains the same at 1,150.
•The support/resistance levels for the Nasdaq Composite moved higher from 2,381 to 2,470 and from 2,468 to 2,483.
Thursday, September 22, 2011 Stock Market Direction
•Stocks declined heavy again with major indexes down at least 3.2% each today.
•SP 500 support/resistance moved down from 1,165 to 1,128 and 1,173 to 1,150.
•Nasdaq Composite support moved lower from 2,531 to 2,381 and resistance moved lower from 2,549 to 2,468.
•SP 500 and Nasdaq Composite are now both below their moving averages (21, 50, 200).
Wednesday, September 21, 2011 Stock Market Direction
•Stock sold off hard with major indexes down at least 2% each.
•SP 500 support/resistance moved down from 1,199 to 1,165 and 1,204 to 1,173.
•Nasdaq Composite support moved lower from 2,580 to 2,531 (21 day moving average)-resistance moved lower from 2,598 to 2,549.
•SP 500 is once again below its moving averages (21, 50, 200).
Tuesday, September 20, 2011 Stock Market Direction
•Major indexes were up at least 1.1% each but reversed course and gave up their gains finishing in a range up 0.1% to down 0.9%.
•SP 500 support/resistance moved down from 1,204 to 1,199 and 1,217 to 1,204.
•Nasdaq Composite support moved lower from 2,602 to 2,580 and resistance moved lower from 2,616 to 2,598.