Stock Market Analysis Aug 24 2016
Major indexes move up yesterday. It quickly reverse down a bit. That is normal since there will be some who are selling when the major indexes reach a previous high.
What is good is that major indexes have follow through to the bullish patterns in the 60 min charts which I mentioned in my past stock market analysis. Those of you who have been following my journey would have known it and we are all anticipating the breakouts.
Today is Wednesday and there are 2 more days till Janet Yellen's speech. Speeches by the Fed Chair can have a big impact on the markets and can trigger a gap down. Anyway since the daily trend is up, we continue to be bullish. A rising stock market is also good for the Presidential candidate of the incumbent party. I wrote a piece titled Why Hillary Clinton Will Be The Next US President. How The Stock Market Has Correctly Predicted Elections In US & Around The World.
Scroll down for the summary. For past analysis go to Daily Stock Market Analysis 2016. As promised I have posted the Intermarket Analysis 4th Week Aug 2016. Click to read for a long term view of the markets.
Now, let's see what the charts are telling us
IWM and MDY formed a 60 min cup and handle which I pointed out to you in my past analysis. Cup and handle patterns are bullish tradeable pattern which can be a good trading setup. Learn more about the cup and handle pattern by reading How To Profit From The Cup And Handle Pattern.
A Bullish Golden Mode is a good sign for a stock or index, it is a trend following indicator which I named. Learn more about it by going to The Golden Mode Trend Indicator.
Dollar And Commodities
Here's a summary of what the charts are telling us:
- Major indexes have broken out of bullish chart pattern. So we are bullish in the 60 min charts provided there is no gap down
- Congestion areas that are overcomed in the 60 min charts now acts as support.
- Oil is neutral in the 60 min charts. The presence of a large bullish bar in the 60 min may help oil to consolidate and form a box. Breakout above box will resume uptrend while breakdown will be bearish.