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Friday, February 10, 2017

Market update Friday 2/10/2017

The S&P fails to break out 

The $SPX (S&P 500) is probably the most heavily charted index of all, and the $SPY ETF (which tracks the $SPX) has to be one of the most heavily traded funds in the world. Lately I've been charting the DOW, because it has lead this rally, but it's time to take a close look at the S&P.

The SPX stalled at the top of the smaller contracting triangle pattern (thin blue lines), and futures are flat, and that's not good. 

The short term DOW chart looks like it broke out and until the rising channel breaks, the trend can continue, but will it? 

 The 30 min Dow:

The 5 min chart:

The Daily candlestick view doesn't look so good, and after charting the $SPX I'm bearish. Very bearish. Thinking yesterday's new high on the Dow was the end of our final wave 5. 

There's nothing the powers that be would like more than to crash this economy on Trump's watch, and continue with their globalist plot - destroy America and expand global governance. "Order out of chaos", is their MO, and we're seeing it play out on a daily basis.  

Energy saw a bounce, but SOX broke the 5 min. trend (ending down yesterday), so it looks like we may be seeing a sector rotation. 
Support on $SOX is 962.32 (held yesterday). Still think it can make a new high in the 980's 

Energy: Bought at key support
Energy also bounced out of the hole on a bullish hammer candlestick, at the 200 day... 
That's bullish, so watch for a break out above resistance @ 605. 

The 2 hour view shows that resistance more clearly: 

The opening bell just rang so I'm out of time.
Take care and have a great weekend.  

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