U.S. stock indexes at critical short-term juncture

Near-term price action in the S&Ps and Russell 2000 will determine the next short-term trend

Several chart developments are worthy of note.

The advance on May 14 in S&Ps penetrated the upper boundary of a 6-month channel. This type of price behavior is typically a sign that the advance will accelerate. However, if the advance does not accelerate, but prices return to the channel, it can be a sign that the upside penetration of the channel was a blow off. Friday’s decline was a warning sign that the May 14 upside breakout was very possibly a blow off.


The intraday graph displays a possible five-point symmetrical triangle top. Further downside momentum this coming week would indicate that the short-term trend has turned down. Funny thing about short-term trends — they sometime become longer-term trends.


The Russell 2000 provides a more optimistic chart picture. The daily chart displays a possible pennant. A close above 1009 would complete this pennant and would lead to another strong advance.


I will take my signals for shorting from the S&Ps and for buying from the Russell.

$ES_F, $SPY, $TF_F, $RUT


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Peter Brandt Blog

Web Analytics