ChartsEdge's map for 3/13; and my additional comments

Market Map for Mar13

Posted: March 13th, 2009
Author: Mike Korell, ChartsEdge
Filed under: One-Day Market Map »

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Thanks again to ChartsEdge, and folks, here's another comment - don't forget to keep in mind the ChartsEdge weekly cycle forecast for this week (you can always find using the "ChartsEdge weekly" label in the labels list at right). While the day's map yesterday worked well in terms of intraday cycle timing, the trend was biased to the upside - again a reminder about how to use these forecasts (for a refresher, check my "No Bull No Bear No Bias" education site, link in welcome section at right). For the full week, their cycle forecast (generated with a different system than the daily - and all forecasts fascinating, but subject to the same general comment about timing/trend) showed the equity markets moving higher into late Thursday and early Friday. With weakness shown for Friday afternoon. So, something to keep in mind this afternoon.

For those interested in socionomics - isn't it fascinating that Bernie Madoff went to a jail cell yesterday, as the market marched higher?!

This week was finally a week in which those going by the old canard, "buy on Monday" were rewarded - but let's not forget that doesn't work every week, and certainly hasn't helped most weeks on the slide down. As Ben Lichtenstein of TradersAudio.com reminded this morning, futures / rollover has had a lot to do with what we saw this week; and he commented on the volumes too. He also pointed out the support at SPX 800, Dow 8000 (c'mon folks, we know that's the January lows so obvious on the chart, right?), but nobody can argue that there are potential resistance levels inbetween 750 and 800 too - including 760 and 770 (and those aren't just chosen based on round numbers). 760 is one that would be based on a small 1.618 extension level if anyone wants to check that on the hourly charts using a bullish butterfly (or potential small, stealth flat) possibility. But I cannot really micromanage it intraday (even when I try to post a few things I see intraday - more possible some days than others). So we can stay at the macro level review - up all week, and plenty of overhead resistance levels to be wary of.

The McClellan Oscillator moved above zero on both NYSE and Nasdaq, which is a continuing positive, telling us what we've already known for days or weeks - that the market internals have been improving. Now, there are chart reasons to send out a reminder that it remains possible for the market to seek out lower levels in the days and weeks ahead! So as always - be careful out there, and happy trading!