A navigation system for trading the S&P500 index
A huge gap up above the Sell Signal level of 2765 indicating that the selling may now be over.
Some stabilization before triggering an S/T Buy Signal at 2779 and a powerful move up into 2800.
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No CommentsAn extremely choppy day with strong selling and strong buying as the market reacts to last week's drop but defends 2730.
A strong move up in the T volume oscillator is encouraging and opens up the possibility of a recovery, and a possible new T structure under construction.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsWelcome to the Trading the Line Special Report.
The market is back under pressure as a series of gaps down and manic attempts to recover reveal the distributive nature of May and find the market back below the important 200 day moving average.
For me, that is a Bear Market Warning flashing.
Of course, a rapid recovery back above the 200 day moving average would be a very welcome sign, but in the meantime the market continues to look for stability in what looks like an increasingly unstable World.
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As we can see in the chart below with the T volume oscillator*, the market was starting to weaken from mid April – as the oscillator starts to diverge with price. The oscillator is declining below zero whilst price is making new highs.
The market was running on vapors, and it was running out of time.
The large T structure projected a high on about 16 April with a possible subsequent high on about 09-10 May but the 01 May engulfing down day was enough to signal the end of the spring advance as each subsequent attempt to move back up has been rapidly sold into.
* The T volume oscillator is an indication of Buying Power within the market as a whole
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Zooming out to the weekly chart below.
We can see that the market stretched up through the previous resistance levels at 2800 and 2870 into a token new high at 2950 before its completion of the Spring advance.
The weekly and monthly close below important support looks, at least for now, rather ominous.
As we can see there is important rising support in the 2690s, but much lower starts another tipping over effect, and the 'delights' of Pandora's Box below that.
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As we can see in the monthly chart the rising trend line from the 2000 high continues to be very strong resistance.
The monthly close below 2780 (10 ema) is a bearish indication. Whilst strong potential support lies at the 2690 level (21 ema), further weakness would be a very ominous sign.
The next very long range projection for a high is in the September – October time frame. If the market is to recover and proceed back to new all time highs or perhaps an important lower high, we need to see some kind of recovery back above the 10 ema.
The long range oscillator continues to be in decline and is potentially warning of further trouble ahead.
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All in all, 2019 continues the dynamic range of 2018 – far beyond the experience of the previous years. We should expect price volatility and price expansion to continue and trade accordingly. This is a Brave New World.
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Regardless of whether the market can recover or whether deeper low(s) are ahead of us, the simplicity of the proprietary price based S/T Signalling System continues to keep us on the correct side of the market, with price firmly below Sell Signal levels.
If you would like to learn more about using the S/T Signalling System please get in touch.
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Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsMarket at a critical juncture attempting to hold onto the 200 day moving average.
Bear market warning flashing with Futures down significantly overnight.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsSell signal still active as the market drops to the 200 day moving average and looks for some kind of support.
Entry short at or above 2782.
As usual recommend covering at or prior to the close.
Some bullish signals flashing. There may be enough actual fear in the marketplace again to put a floor under the current decline.
However with some strongly negative forces and declining lines it may take several attempts to turn this thing fully around. Caution in either direction is recommended.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsThe same theme as Friday: A recovery open is sold into and the market drifts back lower.
The market is unable to hang onto gains within the declining channel and repeated attempts to rally result in strong selling into the close.
Sell Signal still active and now challenging the important 2800 level again.
Note that the market has consistently sold into the dramatic bursts of buying and this is a characteristic of action below the important support levels.
In effect until the market resolves its problem with price this process of strong buying and selling will continue and the zig-zagging lower will continue. We are currently within the left-hand side of a larger structure that is under construction, and will eventually result in a new large T and a strong bullish phase.
Whilst a Sell Signal is active we will continue to watch carefully for signs of an established low and a new structure emerging.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsA recovery open is sold into and the market drifts back lower.
Sell Signal still active.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsA significant drop in pre-market futures meets strong selling at the open and a rapid move lower.
Weakness below 2835 triggers an S/T Sell Signal at 2825.
The initial bounce is sold into and the market heads for the recent low.
As usual recommend to cover short position at or prior to the close.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No CommentsThe market opens well below the Sell Signal line and rapidly moves to 2825 triggering a cover and Sell Signal.
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No CommentsA number of attempts to move higher are sold into as the market continues to compress.
Buy Signal still active but price is flashing a warning.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
No Comments