ChartsEdge (U.S. equities) map for 7/22

Market Map for 7/22

Author: Mike Korell
ChartsEdge Daily Maps


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Thanks once again, Mike and ChartsEdge!

Folks - a busy time for earnings, eh? In navigating through all this, if you aren't already familiar with the ChartsEdge forecasts and maps and how to use them, then remember to check out the information on them posted at my "No Bull No Bear No Bias" blogspot, or of course the ChartsEdge website (these links, always at the right side of the page here).

Even if you are familiar with them already, remember to check about mid-morning and see if the intraday skew or bias is still working for relative price levels, or if something else is taking over, but you can still consider the forecast for reference for intraday highs and lows (even if the relative high/low isn't the same).

We'll continue to keep an eye on the Fibonacci levels for the VIX and Nasdaq Composite, along with the other levels we've been discussing for various sectors.

Morgan Stanley (MS) - led the markets down in 2007/2008, and not doing well this morning ... The financial sector measured by XLF hasn't been performing as well as GS in particular, although FAZ got sold out when it moved under the prior swing low as I'd mentioned at that time. If FAZ has been tracing a valid triangle, then it would measure down to $38, but I've also mentioned that it may be a little off since FAZ is a Direxion 3x ETF and I cannot really know if it measures out in patterns the same as a stock or "normal" ETF. So I'd consider FAZ primarily for its stated purpose - daytrading - or if using similar to SKF (inverse to XLF), then use it mainly by comparison to XLF and then secondarily to its own chart, using the technical indicators, trendline and support/resistance, and volumes.

The SPX has moved up about 89 points from the 869 low - thanks Tony Caldaro (in his OEW update last evening, posted at his website Elliott Wave Lives On, also in links list at right) for noting that. On the way down in 2007/2008, and now in the moves in 2009, the legs of the moves in SPX often measured approximately 90 points. I'd even noted that the rise from March moved in 3 months - 90 days - approximately 3 times 90 (667, 757, 847, 937).

For that matter, what's the EW pattern? I've mentioned not being "wedded" to any one EW count, although I do look to Tony's OEW counting. I've wondered whether we may be seeing a larger Major B structure with an expanded "b" wave of its own playing out now, but it's just a wonderment and I'm mainly using EW counting for the smaller, intraday movements to test out levels for support/resistance. Fibonacci is definitely something I'm using especially for the bigger picture, as readers already know. Based on the action late yesterday, I was thinking that the VIX wanted to "camp out" underneath 24.78 today and then make a move higher on Thursday. But with the futures where they are right now, I'm not as sure whether we might see more of a move like that today. If that's the case, then perhaps an intraday rise will be more of a pullback instead of something more bullish ... will see.

So these are just a few comments ... as always, careful out there, respecting your trading timeframe and style - and happy market navigating!