ChartsEdge map for 4/7

Market Map for Apr07

Posted: April 7th, 2009
Author: Mike Korell
Filed under: One-Day Market Map
Comments to ChartsEdge »


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Thanks again, Mike and ChartsEdge!

Folks - seems to me that the market action yesterday, and the ChartsEdge daily cycle map today, are saying something diffferent from the weekly cycle forecast from ChartsEdge. It's true that their weekly forecasts and daily maps are generated using different methods (more about that is explained at their website pages, use the link in the "other sites" listed at right; as well as at my trader education site "No Bull, No Bear, No Bias" with a link in the welcome paragraph at right). But is something else going on?

Just my personal early hypothesis here, but it might be possible that there's a negative bias that is skewing the weekly forecast. For myself, I've been documenting in posts here some of the concerning signs in sectors such as the banking industry and in the Dow Transports. The banks have not been able to get past the resistance levels I described and showed on the charts of the $BKX index and KBE exchange-traded fund (and remember how the XLF was showing as extremely bullish recently, which despite the recent performance of Goldman Sachs, was a clue that sentiment might be too hot in that sector). And the Dow Transports, after plunging under the 2600 target, came nicely back to the 3000 resistance level and weakened off yesterday. And here's some info to note about earnings: Fun Fact Of The Day (Zero Hedge, 4/6/09) (while we don't trade on "news" but rather the market itself, it's good to have reference from time to time about the fundamentals).

Nothing that necessarily becomes worse than a pullback that allows for another leg up at some point (and note also Merriman's comments in his update this past weekend about the possibility of some level of setback too). So if you're bullish, you're sizing this up and looking to see whether uptrend channel support is maintained. If you're bearish, you're thinking that the resistance levels turn the markets back for a retest of the March 6-9 lows.

And in any event, you're being careful out there - right? - so happy market navigating all!