A Look at the Equal-Weighted NDX/SPX Indicies …

The McClellan Summation Index continues to push higher today showing that there is more buying pressure than selling pressure in the market currently … however, a look at the equal-weighted major indexes point out the fact that the leadership in the market is drifting to a smaller and smaller list of names.

NASDQ 100 Equal-Weighted Index – Daily Chart

S&P 500 100 Equal-Weighted Index – Daily Chart

We will have to see if these potential Head & Shoulder chart patterns actually play out as we go forward …

Cheers … Leaf_West

Crude Oil Breaking out of the Broadening Price Pattern …

Crude oil futures are breaking out of their downward broadening price pattern …

Crude Futures – Daily Chart

A 3-wave price pattern is likely based on the recent wave structures …

Energy Producer ETF (XLE) – Weekly Chart

I was trying to get cute on my swing long and re-load on a pull-back and it looks like the next pull-back will be at a higher level. 🙁

Cheers … Leaf_West

FB Update – September 14, 2017 …

FB has been in a 34-bar sideways consolidation since gapping higher last earnings reporting date … the daily trend strength histogram has pulled back into the Chop Zone, but the trend indicator has actually flipped to the downside here today.

FB – Daily Chart

FB – 195 Minute Chart

Does every large institution have a full-up long position in FB?  If there are no new buyers, then any incremental seller has the potential to start a new short-term trend in the stock.

Bottom Line – When everyone owns a stock, you have to be on the look out for when the music stops and be sure that you have a chair picked out to sit down on.

Cheers … Leaf_West

BA Update – September 14, 2017

BA has been a monster stock for the DOW and the daily chart looks like the trend strength consolidation pattern looks like it has completed its pull back into the Chop Zone and therefore, in a position where the next expansion phase could begin at any time here …

BA – Daily Chart

A key thing to watch on this next move will be the relative strength indicator … note that the momentum of the R/S indicator looks like it is curling higher (bullish).  Volume is also perking up here and yesterday saw the total daily amount get above the 20-day SMA (also bullish).

BA – 195 Minute Chart

I have an audio alert set at about $1.00 below the break-out level on the daily chart, but I also have an audio alert set on the break of the consolidation pattern upper trend line …

Bottom Line – BA looks like it could be getting ready to begin another expansion phase on the daily time frame.

Cheers … Leaf_West

Getting Near the End of this Bounce?? ….

Back on August 27th, I wrote a blog post about how the market internals that I track (i.e., the McClellan Summation Index), was pointing to a near-term beginning of a bounce in the overall market (click here for that blog post).  While I thought we were about to bounce in the market, I also thought that the bounce was going to find resistance at some point after a handful of days. Continue reading

AMZN Update – September 12, 2017

I caught a nice little trade intra-day in AMZN during the last hour of the day today, and when I see the large cap momo names acting well into the close I will typically expect to see strength the following trading day … so I suspect the easier trades in AMZN, GOOGL, NFLX, AAPL and FB will be to the upside tomorrow (AAPL maybe not because of the iPhone X launch).

Anyways, I thought it would be worthwhile to update my read of the AMZN charts … Continue reading