Is the Dow index showing signs of fatigue? Are there subtle signs of a rollover? Yesterday's small trading range may tell us that market participants are undecided and at the same time upward momentum has slowed down for the time being. It is good that at least we did not see a topping tail or shooting star which hints of a bearish short term reversal.
At these moments, it is good to analyze the major indexes objectively and ask ourselves is there any warnings signs that we should be aware of. While the majority of market participants either buy on rumors, tips, advice and hope, we as prudent market participants will slowly look at things and figure out things without any bias.
A bar by bar analysis and a zoom in into the smaller timeframes will give us hints to where the market is likely to go in the short term. For that, the 60 min charts of the index futures are very useful to help us find support and resistance areas. The 60 min chart is long enough to give slow traders or investors to make informed decision but it is not too short to blur us with noises in the market.
Looking at layers of support below in the smaller time frames are also very helpful to know where the Dow index, S&P 500 index and Nasdaq may bounce if there is any drop in the index.
To learn more about the 4 stages of the market read The 4 Stock Market Stages Every Stock Will Go Through
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.
Aug 13, 18 05:56 AM
The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.
Aug 13, 18 05:22 AM
In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.
Aug 07, 18 08:10 AM
In this lesson, we will investigate and learn why the S&P 500 had a nice rally in July 2018 after a correction in June 2018. Learn how the charts and technicals hinted of a bullish reversal.