Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Consolidation fixation!


The consolidation pattern in the market since June has created so much commentary that we thought it important to outline graphically.

S&P 500 - The current trading range of 975-1015 in the SPX is so identifiable that it has everyone guessing which way it will break. Due to the attention, you can bet that the range won't last forever, but until it breaks there is no need to guess.

Dow Jones Industrials - The DJIA looks similar to the SPX, except that the recent move to the upper end of the current trading range created a more meaningful overbought condition. Much like the SPX, there is no need to guess which direction the breakout may occur, because once it does, the reaction (in either direction) should be dramatic.

NASDAQ Composite Index - The NAZ looks very different than the other indices because it has not been in consolidation mode since June. The Technology dominated market barometer has been in a very clear trend of higher lows and higher highs, which defines an uptrend. It appears that while the other indices are in neutral territory, this index may be putting in another higher low.

< Previous
  • 1
Next >
no positions in stocks mentioned
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos