Index Inflation?
Using the charts of the indices will help you in focusing on two all-important things in your trading, whether to have a bias toward the long or the
short side, and which area of the market to focus on. From the daily and weekly
charts for the three indices, signals are being broadcast for a potential continuation
to the upside.
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The Dow Industrials
(
INDU |
Quote |
Chart |
News |
PowerRating) are clearing the top of a
seven-week cup with handle, and have recaptured both the 20- and the 50-day
moving averages on the weekly chart.
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The Nasdaq Composite
(
COMPX |
Quote |
Chart |
News |
PowerRating) is continuing to build the handle
on its pattern, it is holding above the 50-day moving average and the 20-day is
turning upward.
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The S&P 500
(
SPX.X |
Quote |
Chart |
News |
PowerRating) completes the cup-and-handle threesome.
It is nearing the breakout point from the formation and appears to have put in a
double bottom.
Our team of analysts keep charts of each index handy while searching for
potential setups. While we always have an eye toward both the long and the short
side, being able to recognize possible bias by looking at the indices and
sectors aids us in helping to sniff out the most profitable setups for you.
Have a wonderful weekend!
Duke