Stock Market Technical Analysis 7-9-19

Stock Market Technical Analysis 7-9-19

hi this is Randy Finney with the right side of the chart and this is a closing market wrap for Tuesday July ninth 2019 not a lot to report today but there are some developments worth noting so I'll do a market wrap today today was a flat day the spy was up point what about 0.12 percent 0.12 QQQ was up exactly half a percent today so the markets pretty much gained what the little amount they lost yesterday so again not a lot but there's some things worth pointing out and really I'll get to the 60 minute charts of QQQ and spy I know that's where the majority of traders trade but I like the futures especially at this point in time because the charts are a little more clear there's some you know quite a few reactions because the futures trade virtually around the clock you get a lot more candlesticks a lot more reactions to pick up on trend line support and resistance levels so what we're looking at here that's the front page of the site I'm just going to go over the 60-minute charts of the futures what happened today so this is really picks up from where I left off last night as I always say the markets are dynamic and so is my analysis so this morning pre market today a little before 8 o'clock a.m. I posted took these screenshots and poster that we had bullish falling wedges forming we had hit my targets I was first foremost kukuku I had that initial target at 77 60 and that was hit in the overnight session and while doing so what you can see down here we put in positive divergence on the RSI right here not so much on the PPO and these what I refer to it was small bullish falling wedges so you have remember more importantly you have those wedges set up on the heels of these much larger bearish rising wedges so I said if these popped that probably give us an upside rally I followed up which I'll get to in a second with some targets which were hit and so that's exactly what happened a minute the market opened up boom we popped those wedges it was impulsive which confirmed the breakout and and so we got the rally today so again that was a little before 8:00 right after the markets opened I mentioned that they broke out broke out impulsively and then I added some target to targets here and slightly forever and reverse off t1 but we went through there and at that time we hadn't hit my target on spy or yes which I'll get to so my final target was 2844 you can see right there t2 which we did hit we hit 78 44 well at that point we had hit it I'll get to that chart in a second and so I am expecting this pullback why one of the reasons was that it wasn't just price resistance as I mentioned in this update on the site you can see the price resistance levels you can see this reaction high this reaction high then we broke that level there is a reaction from below and another reaction from below and so you have price resistance but more importantly or as importantly the measured target if you take the widest part of the wedge which I'm drawing right here and then you add that to where the wedge broke out that gives you a measure target so the measure target now on these small wedges has been hit so again this is a this is what sometimes confuses people this is a short term bullish setup or was this morning at least which has now been hit within a larger you know bearish outlook based on these large rising wedge patterns here that just broke down so again these were that was updated what my last update on the site at 147 p.m. that was then this is well let's get to the spy charts while we're here yes I should say there's the es wedged posted again before the market opened right when the market opened posted it popped possibly first target was there added at the only target for spy or yes I should say 2978 and then that target was since hit and so now we'll get to the updated charts which are live right now as the markets already closed same there's at t1 level right there as I had 78 44 and you can see that's pretty much what stopped the rally cold today now the day isn't over we can certainly continue overnight but the fact that again when I take I'll show you the measured target here the widest part of the wedge which has now been hit final target that I favor reversal in the overnight session come on down to hit the next target there 77 25 50 we'll call it there it is pretty pretty well to find some support and I also made mention that you know my convictions aren't high share this as a potential you know trade idea that you know reverse from a longer short there with these targets being hit but the big thing is tomorrow and Thursday Jerome Powell the Fed Chairman gives his semiannual update on the markets a semi-annual monetary policy testimony tomorrow at 10:00 a.m. Wednesday before the House Financial Services Committee and then on Thursday to the Senate Banking panels so right now as I mentioned yesterday all eyes are on what the Fed is gonna do and so they'll be digging through every little word every little you know phrase that he says picking up on that so point is we might have some volatility and whatever he says if it's a perceived as bullish for the markets that may override any short-term technicals and if it's perceived as bearish that could get us down to our get next target quickly just to point out if that level goes this is es you know from here since we already hit my first target I would expect if we come down we've already hit at once we had the initial reaction that's why I list multiple targets each level is where a reaction is likely that's a reaction so the next time if we come down overnight 29 55 and a quarter and that's also backfill the gap and then should that level go next stop should be a 21-8 29 18 or so right there you can see on on yes and I think already showed you an q yes I did so there's the targets on NQ it'll zoom out zoom out a little bit for you here there there's the whole pattern right there for you and some additional targets and as promised the 60-minute charts of spy nothing really nothing exciting again we've had two breakdowns spy broke down off from the rising wedge as well similar to the futures we were just looking at we have this this is the bigger picture here these lines here the Virgin hi baricza rising wedge breakdown but not impulsive a so it's almost you know the Powell's speech is probably as significant as the last Fed meeting and of course they're gonna meet later this month and so that's what the markets trying to cue in on this I said yesterday dears I don't forget what it is now about a 90% chance we're gonna get a quarter point rate cut unless 10% chance of a 50 basis point cut but again those numbers change you know you'll see some physicians shuffling in the market so that's why this breakdown hasn't been impulsive there hasn't been much follow-through so you know you have to put a you know treat it with a little bit of skepticism if you will but take it on face value it is a break of support sometimes this happens you get these breakdowns and there's some market event just hanging out there putting everybody in a holding pattern and then the charts go on to play out as they should so it very well could be foiled you know Powell's testimony has a potential to foil this but if you you know second-guess all day long what's going to happen you can never do anything I'll say this too there's no reason to be heavily invested right now with that coming out but with that being said the charts are indicating something along these lines that's pie kukuku powell changes all that after tomorrow so be it QQQ isn't far off the highs but so far it has a pattern of failing there we've had one two three four failed attempts and then BOOM couldn't get through bottom fell out try that again one two so far almost there again what we pop it we could and you know just to posture these indicators everything looks like we might you know PP o–'s curled up here but if we do a lot like I said before I went on vacation it doesn't change the long-term technicals haven't changed nor would they on any more upside it should QQQ pop above their that all we're looking at at this point unless it could be more but right now if it's not if it's just a marginal new high it'll be a backtest of the trendline and simply extend this divergent high that's already in place right there you know sometimes a wedge breaks down and that's it you get the breakdown and then the sell-off and other times and it depends almost equal odds you get a backtest of a wedge at a higher level and then you you move lower so either way you know if it's gonna play out this way you're not talking a lot of upside so that's that's where we're at it should reverse somewhere in there you know after making a marginal new high if if these charts are gonna play out the way that uh you know I would expect them to okay and since this video was so short I'll just mention members I just wrapped up an extensive video covering gold all the other precious metals silver platinum palladium and the mining stocks as well as a US dollar and euro highlighting both the longer-term near-term outlook some key levels that video was just uploaded uploading right as I wrap this one up here and will be published shortly and then you know trade ideas this one's already you already hit the first target so I'll share it here in the video just just things were sharing the trading room CBDs posted this one earlier today as a trade setup with a breakout over this trendline here just shortly after that the stock did breakout and went on for a quick 14% gain from there popped up doesn't look like much because it's a low price stock but when I hit this one 9450 target and so from there where is it now let's see we're close n even have a chance to check out CBDs that's it parked right on it you can see that after hitting it there it is hit a high of 195 close enough for government work half a penny over my price target and so you know this one plays out the way I expect as I said on that last update there that these things you have one or two options there if you've traded this one today on the site if you get a pullback because that is resistance you can look to position and a pullback to support such as a back test of this trendline there's some horizontal support there as well or just let it run these these a little low price pot stocks can can become much more overbought that's nothing a 28% move in a stock like this you can see right here dwarfed at in three days right there so you know two ways to trade it you either take your profits get out take your quick 14% and run or just set a stop to protect profits somewhere in there and let it run up to that next target there and at that point probably best to get out although I have a line right here that would be this would be my max target I should have updated that in the trading room but I'll do it now I'm just like I said slow day not a lot going on and this is these only kind of things I'm comfortable you know trading right now you get in and out things that don't have a high correlation to the market those are the type of stocks that I think you're more bang for your buck and then things that are heavily index and QQQ or SP why because again whatever Powell says tomorrow is going to move the indexes and if you're trading Apple or you know Facebook or any of those they're prone to whatever inflows and outflows are going on QQQ at the time and sby so these little niche stocks are kind of the way to go as well as commodities and other things like that so we'll wrap it up here and again I'll have that video out on gold published shortly for members and I'll pick up tomorrow after a Powell speech to see what the market does this has been Randy Finney with right side of the chart I hope you enjoyed it

12 thoughts on “Stock Market Technical Analysis 7-9-19”

  1. I needed to pause this repeatedly. I was taking notes, so much information to take in in a short time. I couldn’t keep up.
    I’m subscribed, and I’m paying attention.

  2. Trend (short, medium, long term) still going up. Doesn’t matter if it is money printing or awesome fundamentals. Why look for tops or bottoms when money is in trends. As they say – “it’s not timing the market but time in the market”

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