SPY, DIA, QQQQ Downtrends, Thin Air and Ascending Triangles! (12/20/09)

As previously mentioned, the Dow and S&P are testing their downtrend from the 2007 peak.  Here's a look at market ETFs before Monday's open.  First I'm going to present the 3 year view and then the 3 month view.  All of the charts are from stockcharts.com.

$SPY mirrors the S&P and is testing the downtrend from 2007.  Also July 2008 ceiling resistance is a few points higher.

$SPY


$DIA is testing the 2007 downtrend l AND July 2008 ceiling resistance. MarketClub has a free technical video on the Dow (via Adam Hewison) that you should see: As the Dow Goes, So Goes the Country.  I like MC videos because they are simple explanations.

$DIA


The QQQQ has been killing it on positive tech earnings and is above all levels except July 2008 resistance.  MarketClub shows that the Nasdaq index is between the 50 and 61.8% retracement, which Hewison calls "thin air" which could have negative repercussions (video here).

$QQQQ



There's also an immediate term bull case for the markets when looking at ascending triangles.  Check out the near term view of SPY, DIA and QQQQ.  Once prices start making lower lows it would mean the uptrend is broken w/ a possible support test and/or flip to descending mode, or you're own explanation..  So I guess it's a battle between short term momentum and long term downtrends/ retracements.

$QQQQ


$SPY


$DIA


If the Amtrak had wifi or I had 3G wireless on my laptop I could get into shippers (DRYS, EXM, SEA) tomorrow but I don't, so I shan't.  I need Clear 4G everywhere.  Watch that $6 level on DRYS and the ultimate symmetrical triangle. Check back for an update.

Full disclosure:  Although I do work as an affiliate for MarketClub, I have followed their work and am confident in the quality of their products and services.

Comments

  1. Click here to see GILD chart, This chart is still in Play ( posted 12-16) . Need a lower price, before I'm jumping in, though.

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  2. Comment Moderation, what! Is Ned posting here too?

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  3. Whoa how did that get through the second time? Not that I don't want your link but I'm supposed to moderate that shit from spammers. I see it was unapproved the first time. I embedded the wave here.. http://www.distressedvolatility.com/2009/12/public-drys-chart-updates-on-google.html

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  4. Hi Dvol, I used the Edit comment link to get the chart link included. I figured you were using some sort of moderation. Spammers likely, won't go through all that trouble, I did to post the link. I like it when people post the link at my site, it's more convenient for me, than to have to go chase down their website on my bookmarks folder--
    Fortune 8 does that all the time, ( no link), and then I have to go find him in my bookmarks 1 of 100, time consuming and a hassle.

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  5. Ah that explains it.. Where's the market headed are these ascending triangle breaks going to stick?

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  6. Hi Dvol,
    I'm starting to accumulate small positions in TWM. Shorting IYR, I managed HOD, high of day entries today, PSA,SPG,IYR, VNO GTC 72.5, never triggered, Doesn't look like I'll get a 72.5 entry on VNO.

    ReplyDelete

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