Index Watch for August 28, 2009:
Index Charts
S&P 500 Index ($SPX) -- The key areas of S/R on the Intraday Chart are 1040 and 1010. On the Daily Chart, the upper trendline continues to hold the index down.
Nasdaq 100 Index ($NDX) -- The Intraday Chart has a clear Broad Pattern, which typically indicates the market lacks intelligent sponsorship and is out of control. The Daily Chart continues to push up, and I'm yet to spot a crack in the action. On the Weekly Chart, the upper trendline was touched Friday and failed, which is normal action on the first test.
Russell 2000 Index ($RUT) -- On the Weekly Chart, the next significant area of resistance is in the 620 area.
Bank Index ($BKX) -- On the Weekly Chart, the index will find resistance in the 50 area with support at 43.75 and 40.
Dow Transports Index ($TRAN) -- The H&S is still in play on the Monthly Chart and has significant resistance in the 4300 area. The Weekly Chart has strong support at 3400.
Gold Index ($GOLD) -- The Daily Chart has a clear triangle building near the Neckline in the inverted H&S pattern, which is normally bullish. Key areas of resistance to focus on are 975 and 990 with support at 940 and the 200 MA. A breakout from the triangle measures to 1125.
Crude Oil Index ($WTIC) -- I have two charts of the Weekly (Chart 1 - Chart 2).
Natural Gas Index ($NATGAS) -- On the Monthly Chart, we are nearing key trendline support. Although I've been a miserable failure trading UNG in the past, I'll try it again should we test it. I'll take the loss on a failure. If anyone has another idea, I'd love to hear it.
Sentiment & Ratio Charts
Volatilty Index ($VIX) -- The Weekly Chart is still in the confines of a bullish wedge. Many are watching this tick by tick waiting for it to break up. When compared to the action in 2002 - 2007, it's clear that we could grind lower for years.
Equity Put/Call Ratio ($CPCE) -- Every sentiment indicator I follow is significantly disconnected from the market. The Daily Chart is currently at a level not seen since July 2007.
Bull Market vs. Bear Market -- The Weekly Chart suggests we are in a Bull Market.
NYSE Bullish Percent Index ($BPNYA) -- The Bullish Percent Index is an illustration of the number of stocks on Point and Figure buy signals. It's best used as a contrarian indicator and only suggests we should be LESS Bullish when it has readings over 70 and LESS Bearish when it has readings under 30.
S&P 500 Index ($SPX) -- The key areas of S/R on the Intraday Chart are 1040 and 1010. On the Daily Chart, the upper trendline continues to hold the index down.
Nasdaq 100 Index ($NDX) -- The Intraday Chart has a clear Broad Pattern, which typically indicates the market lacks intelligent sponsorship and is out of control. The Daily Chart continues to push up, and I'm yet to spot a crack in the action. On the Weekly Chart, the upper trendline was touched Friday and failed, which is normal action on the first test.
Russell 2000 Index ($RUT) -- On the Weekly Chart, the next significant area of resistance is in the 620 area.
Bank Index ($BKX) -- On the Weekly Chart, the index will find resistance in the 50 area with support at 43.75 and 40.
Dow Transports Index ($TRAN) -- The H&S is still in play on the Monthly Chart and has significant resistance in the 4300 area. The Weekly Chart has strong support at 3400.
Gold Index ($GOLD) -- The Daily Chart has a clear triangle building near the Neckline in the inverted H&S pattern, which is normally bullish. Key areas of resistance to focus on are 975 and 990 with support at 940 and the 200 MA. A breakout from the triangle measures to 1125.
Crude Oil Index ($WTIC) -- I have two charts of the Weekly (Chart 1 - Chart 2).
Natural Gas Index ($NATGAS) -- On the Monthly Chart, we are nearing key trendline support. Although I've been a miserable failure trading UNG in the past, I'll try it again should we test it. I'll take the loss on a failure. If anyone has another idea, I'd love to hear it.
Sentiment & Ratio Charts
Volatilty Index ($VIX) -- The Weekly Chart is still in the confines of a bullish wedge. Many are watching this tick by tick waiting for it to break up. When compared to the action in 2002 - 2007, it's clear that we could grind lower for years.
Equity Put/Call Ratio ($CPCE) -- Every sentiment indicator I follow is significantly disconnected from the market. The Daily Chart is currently at a level not seen since July 2007.
Bull Market vs. Bear Market -- The Weekly Chart suggests we are in a Bull Market.
NYSE Bullish Percent Index ($BPNYA) -- The Bullish Percent Index is an illustration of the number of stocks on Point and Figure buy signals. It's best used as a contrarian indicator and only suggests we should be LESS Bullish when it has readings over 70 and LESS Bearish when it has readings under 30.
