ChartsEdge (U.S. equities) map for 6/29; and my comments on preparing for how the equities markets are shaping up now

Market Map for Jun29

Posted: June 28th, 2009
Author: Mike Korell
Filed under: One-Day Market Map Comments to ChartsEdge »


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Thanks once again, Mike and ChartsEdge!

And, thanks to Andre Gratian who graciously allowed me to share his insights that he communicated in recent posts along with his charts of Friday afternoon.

Readers, you'll also want to check out Terry Laundry's new "T" at his T Theory website including his T chart and his audio comments. I haven't had time to listen to them yet myself, but just looking at that chart it's clear that Terry is saying something consistent with the bullish "T" idea he's been seeing shape up for a few weeks now - so let's check it out.

So, it's evident now that there are several lining up to say that the markets are not rolling over quite yet - including Andre Gratian, as well as ChartsEdge, and Terry Laundry. Despite many seeing the bearish "head and shoulders" possibility, and a solid Elliott Wave count saying that the markets are vulnerable to another move lower. For that matter, I remember seeing Andy Askey at PTV-Investing Blog, as well as Charts and Coffee blogspot, both (independently) posting discussions recently about market potential to move higher. And, Schaeffer's Monday Morning Outlook even spoke about bullish tendencies into this time period.

Well, we've seen the McClellan Oscillator bounce up from the trendline I've marked on it, right along with Terry Laundry's oscillator moving and obviously Andre Gratian's indicators as well. In my post yesterday about the McClellan charts, I annotated onto the Nasdaq chart and included in the post, some comments about possible higher levels for the Nasdaq including a gap fill as well as a Fibonacci extension level that it could reach to 1912 ($COMPQ).

My only additional comment, I don't think all of this is unequivocally bullish. It's still a good idea to watch for the McClellan Oscillator to actually break above the downtrend line I've also marked onto that chart (and I think there is a similar point to remember about Terry Laundry's chart too). As Andre also pointed out, we should keep an eye on whether the SPX can get past 946.

And there's the comment by Raymond Merriman in his weekly preview comments - there's some "fog" on the markets (or maybe rather on the participants) for another two weeks. Whether or not you go for financial astrology, it's interesting that this "fog" is occurring as several different excellent market technical methods are giving different indications for the next path (and as we're going into window dressing and Independence Day).

Maybe one way to sum up my point of view is, not to commit seriously bearish or bullish. Unless a serious trend kicks in, this may be more of a range-trading type of environment. For those preferring intermediate swings, it may be entirely reasonable to "buy on Monday" (maybe with an intraday low on Monday) and let it ride through Thursday, and TMAR in time for the holiday. Just a thought!