Today’s earnings and economic reports will move the market for sure. I say this because yesterday’s last hour spike helped create a Rising 4 Method. There are combinations for this pattern, such as the Rising 3, or 5, or 7 Methods, and they were prevalent enough to keep this rally alive. the Method is created using a long white candle, 2 minor distributional days, and another white candle to sandwich the pattern together.
For the reports, we have Housing Starts, Jobless Claims, and the Philly Fed. This first two come at 8:30AM EST and the latter comes at 10:00AM EST. The consensus for the starts is 0.570M with a range of 0.500 to 0.645M, with a previous reading of 0.583M. The consensus for the claims is 658K vs. the previous reading of 654K. Finally, economists expect the Philly Fed reading to come in at -30.2 with a range of -37.5 to -28.0, with a previous reading of -35. Their charts can be seen below:
As for earnings, we have some notable ones coming out pre-market: BAX, FCS, GCI, HOG, ITW, JPM, KNL, NOK, SHW, SON, LUV, USAK, and UTEK. There are some big names in this bunch that will lead the market today. By looks of the chart alone, it appears that the market will head higher. If we do, it is important to note that the SPX is likely to get stopped at the upper bollinger at 868, provided it passes through some minor resistance levels. The rising wedge on the 6 month chart itself, is not a bullish pattern, but as you can see in the orange box drawn, there is enough support at the bottom of the Method.
I added the chart of the COMP to show the striking distance to the 200-day MA for the Nasdaq. The index will first be met by resistance at the January high of approximately 1660 as well as the upper bollinger at 1677. I received several questions regardling the matter of scaling in shorts. I have not. I decided to add on the first breakdown of any group bullish pattern, such as the Method. So far, that has not occurred. Lastly, you can see the breakdown of the VIX to confirm and support the rally at hand.
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All blogger should just copy and paste this post on their blog LOL! WELL SAID!
TMI247-
CA– your charts are very pleasing to the eye– what platform are you on that allows you to put a gradient on the background?
Stockcharts.com sunset background. You have to upgrade to a premium membership, a few bucks a month.
Glad SOMEONE likes them.
I have used sunset for chart backgrounds since as long as I have been posting charts. Definitely my favorite for blog charts.
However, I don’t have a stock charts membership, and I can still use the sunset.
Great post CA.
Do you do all your charting on stockcharts and not your trading platform?
@peon:
Choose ‘sunset’ under color scheme when you’re setting up the ‘SharpChart’.
You don’t have to be a premium member.
Thanks– never even saw that as an option.
oh wow, i didn’t even know that.
I use my platform for intraday charting to trade. stockcharts is easier for me. I spend less than 1 minute on each chart.
JPM news is good.
It’s good to have you back, CA. I enjoy your commentary quite a bit. It’s concise and well thought out. Hope you had a great time in Cancun, Mexico, and may your pick pocket’s left hand wither away and crumble to dust. Hehe.
The site isn’t the same without you, man. It seems the market’s been “quiet” lately. Don’t know why. Calm before the storm, I guess.
Thank you very much.