As our research team continues to pour over the charts and look for any signs of direction regarding tomorrow’s Fed news, we put together a couple the charts that may highlight some expectations and in at what the markets may do the rest of the week. The expectations that the US Federal Reserve may maintain rates at current levels or potentially drop rates by a quarter percent leaves an open interpretation as to how the global markets will digest this news. Obviously, leaving rates unchanged would be the most benign action the Fed could take. Often though, the markets interpret this as a sign of weakness. Whereas a quarter percent decrease in the US fed rates would suggest that the Fed is preparing for future economic weakness in the US and potential global economy, yet investors may consider this as a very bullish reaction to the Fed. Our belief is… more
On this day, celebrating fathers and all they do for families and their children, we thought we would share some really interesting research regarding the next six months trading expectations in the NASDAQ and what it means for your trading account. One element of our research involves data mining and searching for historical price correlation models. These types of elements... more
Last week's marketwide loss was so minimal that it was negligible. But, sometimes what's not happening is as concerning as what is happening. And what's not happening right now is a follow-through on the bullish effort that took shape two weeks ago. That may have been the biggest weekly advance since November, but remember… that November rally set up what... more
– Stock market downturns tend to be more severe when they start from high valuations – By Mark Hulbert, MarketWatch Predicting when the next bear market will occur is notoriously difficult. Just ask stock-market timers. But what about predicting the severity of the next bear market? That has become a pressing question of late, since Wall Street has shifted from... more
As we’ve been warning over the past few weeks and months, the current price rotation in the US stock market is very much related to the strength of the US Dollar and the continued Capital Shift that is taking place as trade issues and currency valuations drive investors into the US equity and debt markets as protection against risk. We... more
By Clive McKeef, MarketWatch If it's true that markets face slowing economic growth and lower corporate profits due to geopolitical uncertainty fostered by President Donald Trump's use of import duties as a weapon against a host of domestic challenges, then why is the S&P 500 index less than 2% from its late-April record? Markets face three overlapping problems, according to... more
It was a recovery effort to be sure, but hardly the one investors truly wanted to see. Inspired mostly by headlines and unfurling on increasingly tepid volume, the bulls' true conviction remains unclear. This is what the bears' perfect headfake would look like. Whatever's in the cards, odds are good we're going to see some sort of pullback no matter... more
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