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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47824)	4/26/2012 11:40:22 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69749

It looks like aapl had a more of an impact on the indices than expected as strong earnings caused supplier such as BRCM and others to rally also. The move yesterday negated the sell signal on the SP500. Today is day 4 of the current counter rally. We would normally expect a consolidation day today or tomorrow. Same comment on the DOW. Dow transports whipsawing as it negated the sell signal yesterday and went back to a sell today. Given the convergence of the average it looks like the transports have entered a consolidation period. It will trade in a range for the next little while till a major news event gives it a new direct. The longer this stays in a consolidation phase the more likely the resolution will be to the downside. The DOW transport summarizes the mood of traders in some way. There is an underlying skeptism despite the other indices being still within spitting distance of the current highs. Short term sell signal on the COMPQ negated. Financials in a consolidation pattern. Gold still technically on a sell signal, but the higher lows recently indicates the mood of traders is changing to a more neutral stance. Energy still technically on a sell signal. It has been in a consolidation pattern recently, but it is trying to break to the upside. Today is day 4 of the current counter rally. I expect it to pull back from this level for 3 down days starting tomorrow. Small cap index on the verge of negating the sell signal. It is just sitting on top the 50 day SMA. Note that negating the sell signal just means we are flat the market. A new buy signal will only be triggered if the index clears the recent high on the index. Natural gas survived a consolidation day and today is rallying on huge volume. It is close to breaking the down trend line. I would expect resistance at $2.40 though. It does not feel like a rally, but sentiment can turn on a dime in this sector. People make be trying to positions in advance of the end of the shoulder season. Most of the major earnings is now out of the way. The focus will now shift to macro economic issues. The forward guidance has been positive but now enthusiastic as the guidance is for modest growth.