"Market Chemistry @ Work"

Mixture of Financial Factors make Market Price Action a Day to Day Proposition.

US Dollar Pulls Back from Short Term Rally.  There is no Defined Trend in the Dixie which helps to confound expectations for what is next.

When there is Doubt as to Direction, it pays to look at he Longer Term Charts.  The SPY (S&P 500) remains in an Up Trending Channel.  When there are short term doubts as to direction, the 6 Month Daily can provide a more solid foundation as to what to expect.  In this case it is Bullish.

Mathematical Odds Favor the Upside

The "Bell Curve" can work in the Market as Well as Elsewhere when it comes to the Laws of Probability.  (Click on the Graphics to Enlarge View)

SPY 6 Month, Daily - 3.26.10 - The limits of the "Regression Channel" seen above represents "One Standard Deviation" from the price range since the middle of Feb.  The Channel is Trending Up.  There is a 68.2% chance that the market will trade between the upper and lower limits of this channel.  This is not a guarantee, but those are the mathematical odds at the moment.  In general longer range charts are more reliable as to Trend as compared to shorter range charts and patterns.  The Solid Lines are Pivot Points with the upper and lower bars being Resistance and Support for the Week.  This week the Pivots suggest a Higher Market is in store using mathematical equations within a Technical Analysis framework.

Bernanke "Shorts" the Market with Prophecy of Protracted Problems

The Chairman Spoke and the Market Tanked

We should get a Bounce on Friday.

True to Form

Ya Gotta Watch the "Sleeping Tiger."

APKT just took a little nap and then broke again to the upside at Support.

Back to the Acme Packet Study

Let's Look at the Fundamentals Here!

Technical Analysis revolves around Support and Resistance.  There are other factors but those are essential in technical analysis.  Acme Packet (APKT) just happens to be our study at hand.  The stock broke out above Resistance and appeared to be heading upward.  It his a Resistance level and has backed off.  The Old Resistance is considered the New Support.  As the price recedes toward the New Support/Old Resistance we are looking at a Bounce back to the upside.  This could be a Buy Opportunity if the general market internals are Bullish.  The Price Pattern suggests profit taking by those who bought at a lower level.  Institutional holders of the stock could be selling into the strong upswing in the price action.  Compared to recent Parabolic advances in the stock, the action at the moment is Digestive and Consolidating.  A new breakout to the upside is very likely once this "Pause that Refreshes" is over.

Health Care Passes!

We Will See!

Which Way?

Cross Currents Make the Market Exciting!

Acme Packet - APKT - Situation Repeats with Support and Resistance in this Volatile Parabolic Issue.  This is a continuing study of an Interesting stock movement.  It is not a recommendation to buy or sell.  This is presented for educational purposes only.

Breakouts are Exciting and can be Opportunities

Breakouts are a Classic Opportunity to Make Money!

Acme Packet - Parabolic Pattern with a Pause for Refreshment.  Situation begs for Resolution.

A Lower High suggests a Roll Over.  Resistance Line drawn across the Highs and a Support Line drawn under the Lows.  These are out Lines in the Sand.  A Break above is Bullish and a Break below is Bearish.  Let's keep it simple.  The facts of the market are staring us in the face.

Bounce off of Support is interesting but not Decisive.  Up or Down?  Who knows?

Price back up to Resistance.  Breakout above Resistance Bullish and would expect another Leg Up in the Price Action.

Classic Breakout above Resistance with continued move to the Upside.  Price Action is in the Clear and there is no overhead Resistance.

This is a Study in taking advantage of Technical Analysis to help making Trade Decisions.  Direction is so important and the Breakout is Decisive in Revealing the Market's intention.

Dollar Down > Market Up!

US Dollar Rolling over after Short Rally

Rally in the Dollar Fizzles at least for the moment.  There is an inverse relationship of the Dollar to the Stock Market.  When the Dollar goes down, the market goes up and vice versa.  (Click on the Charts for Larger View)

SPY 10 Day, Hourly - 3.16.10 - Trend continues up.  Daily Pivots continue to Rise with the Tide.  Hourly Candles are mostly Green as is the CCI.

Undecided Market

The Volatility continues to Build.  Today was not a Fizzle.  It was a Continued "Winding of the Sprmg."  (Click on the Graph to Enlarge)

SPY is back at Resistance.  The "Tug o' War" continues.  There is a lot of energy building on both sides.  The Drama is About to Begin!