Stock Market Technical Indicators & Analysis
Dr. Wish Short and long term trends remain up. Surprised by Monday’s strength, but remain long.
A friend (thanks, Beth) alerted me to this possible cup and handle formation in EMN. Check out this weekly chart. A close above $55 on high volume would be a good sign of a break-out.
Market remains in up-trend but IBD says “Uptrend under pressure.” Until first quarter earnings are released later in April, there could be some weakness. There is nothing to push the market up until strong earrings are reported. The GMI and GMI-2 remain at 6 each. But the short term indicators like MACD and stochastics are showing some weakness. 
For example, only 44% of the Nasdaq 100 stocks closed with their MACD above its signal line. And only 15% of the Nasdaq 100 stocks had their fast stochastics above the their slow stochastics. These are signs of short term weakness. The Worden T2108 Indicator is at 54%, in neutral territory, but its trend is clearly down, reflecting weakness in the NYSE stocks. GLD continues to show weakness. And 66 days is relatively long for a short term up-trend. Nevertheless, with the GMI at 6, I remain fully invested in mutual funds in my university pension. In my trading account I have some longs but I prefer to write covered calls or sell cash secured puts on the weekly stock index options. The premium received from 4x a weekly option is more than the total premium for a monthly option. I like selling weekly options.
I may not be able to post again until next Monday morning. I am expecting weakness toward the end of the week and into the pre-earnings lull the first two weeks of April…….
Gold may have bounced down off of resistance on Tuesday. Check out this weekly chart, which shows that GLD cloud not get above its declining 30 week average (red line). Click on chart to enlarge.
