Market Oddities Abound in This Era of Globalization

(This is a guest post written by “Chenzo” of If any lesson was clear during the past few turbulent weeks of trading, it was that our markets are more closely entwined than ever. Perhaps this is a sign of our continuing globalization path, but the waves created by any financial event are traveling across … Read more

S&P 500’s Rubber Band Is Ready to Snap Back

After a disappointing Monday, bulls got a good scare on Tuesday’s open as the S&P 500 marginally cracked the February lows. However, buyers stepped up in force and bid the index higher for the rest of the day. Buyers have now stepped up in force for the last two up days. With this oversold period … Read more

Oversold Conditions Persist Even As Volatility Reverses

Until the ugly close on the stock market, Day #4 of this oversold period was as lackluster as I expected. T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), nudged up a bit to 11.7%. For a while there, it seemed as if the latest dire headlines from Europe – this … Read more

Bullish Trading Opportunities Emerge from the Carnage

The most striking characteristic of May’s selling has been the precision of the S&P 500 as it has bounced around key technical levels of support and resistance. On these pages, I have chronicled almost each important step and juncture in this sell-off, and I continue to marvel at how well trades have fared that stay … Read more

Steadily Rising Stock Market Prices Masking Steadily Worsening Technicals

Last week, I claimed that the deeply oversold conditions presented a short-term buying opportunity, but that the downward trend in the percentage of stocks trading above their respective 40-day moving averages (DMAs) and 200DMAs (T2108 and T2107) pointed to a steadily weakening market in the near future. I expected sellers to step up at the … Read more