VIDEO - Fundamental & Technical Analysis of the S&P 500's Daily & Weekly Charts:

http://stockmarketchartanalyst.blogspot.com/

Technical Analysis of the S&P 500's daily and weekly charts, plus a look at the important Economic and Earnings Reports due out next week...

This video is viewed best in Full-Screen Mode...Click the four arrows in the bottom right corner...Press the Escape key on your keyboard to exit back to Normal Mode...

Happy Trading this week...
zigzagman

Update - Thursday's S&P 500 Daily Chart - Broke Below Support Again:

http://stockmarketchartanalyst.blogspot.com/

Today the $SPX daily chart broke below the old support level of 1050.47 from June 7th on a closing basis, with a close today of 1047.22 That means there are NO more support levels all the way down to the 1020. level set back in early July.

Which way the market moves will depend on three important economic reports due out tomorrow. Two of them come out an hour before the opening bell, with the second read of 2nd Quarter Gross Domestic Product (GDP) followed by the bi-monthly read on Consumer Sentiment. Both of these reports are important, and are potential market movers, but Fed Chairman Bernanke speaking on the economic outlook at the Kansas City Fed's annual Jackson Hole conference a half hour after the opening bell is even more important.

All ears will be tuned into his comments, especially after his statement about the economy a while back where he characterized it as "unusually uncertain". That led up to his weak attempt at QE2, which the market reacted very badly to. Does the Fed have any more tricks up it's sleeve to help bolster the failing recovery? It appears to me the Fed is out of bullets, and is shooting blanks these days.

If the market does not like what he has to say tomorrow, we'll see 1020. on the $SPX in the very near future, even though it is totally oversold and the RSI is very close to 30 where buyers normally step in for a quick oversold rally. Tomorrow should be an interesting end to the week.

Happy Trading!...
zigzagman/chartaholic
Tom



(The comment for the MACD in red should have as a last word "but it's a lagging indicator"...)

My Fidelity Active Trader Pro daily chart for the $SPX shows that it has closed below the 5MA for six sessions in a row. The three money indicators at the top look very weak. Chaikin Money Flow (CMF) has dropped below the zero line for the first time in a month and a half, On Balance Volume (OBV), and the Accumulation/Distribution (A/D) line are all downticking sharply. Both the green and red DI lines of the ADX are neutral since they are both downticking, and so is the RSI which isn't showing any noticeable divergences. The ADX itself (black line) is upticking, showing that the downtrend is strengthening.

Overall, this chart looks very Bearish at this point, but as usual, it's all about tomorrow's economic reports and what Helicopter Ben has to say from Jackson Hole, WY. starting at 10am Eastern time...

Update - Tuesday's S&P 500 Daily Chart:

Here are two charts that show how the S&P 500 has fared so far this week...

http://stockmarketchartanalyst.blogspot.com/

The notations on the chart speak for themselves...

VIDEO - Fundamental & Technical Analysis of the S&P 500's Daily & Weekly Charts:

http://www.viddler.com/explore/zigzagman/videos/32/

Technical Analysis of the S&P 500's daily and weekly charts, plus a look at the important Economic and Earnings Reports due out next week...

This video is viewed best in Full-Screen Mode...Click the four arrows in the bottom right corner...Press the Escape key on your keyboard to exit back to Normal Mode...

(and by the way...It was Home Depot and WalMart's (not McDonalds) earnings reports that gave the market a lift early last week...)

Happy Trading this week...
zigzagman

Update - Thursday's S&P 500 Daily Chart:

The post I put out Monday after the closing bell has been verified by today's weak economic reports. The economy is not recovering as well a we had hoped it would, and my Bearish stance is confirmed even more by today's data:

"U.S. stocks tumbled to their lowest close in nearly a month on Thursday as the latest batch of data amplified concerns the economy is stuck in neutral.

The selloff was broad, with five stocks falling for every one rising on the New York Stock Exchange. Sectors most sensitive to growth were hit hardest.

A report showing factory activity in the mid-Atlantic states contracted in August for the first time since July 2009 blind-sided investors, who had been expecting activity to increase. Earlier, the Labor Department said first-time claims for jobless benefits rose to a nine-month high."

http://finance.yahoo.com/news/SP-500-Nasdaq-fall-2-rb-40862475.html?x=0

Update - Monday's S&P 500 Daily Chart:

The lower wick of today's candlestick tagged the lower Bollinger Band like I predicted in this weekend's video, and rallied fairly strongly during the afternoon...The only problem is today's lack of Volume...It was the lowest Volume day this four month chart shows!...So in my opinion, it isn't a very convincing attempt at digging itself out of a hole...For the moment, the lower Bollinger Band is upticking, but if it starts down again that will be a sign or trouble for the Bulls...

The support level at 1100 from late July has already been breached, and if the support level from mid-July at 1060 gets taken out I'm fairly certain that the $SPX will go down to test the 1010 level of support from the beginning of July...If or when that level of support fails, I'm predicting it will fall to between 925-950 before bouncing on an Oversold Rally...

The fast line of Stochastics hit very Oversold territory, and the fast line did turn up ever so slightly today...But the CCI did not uptick, and the Histogram of the MACD took another sharp downtick, along with both the fast and slow line...So what if the market barely closed positive today?...The indicators say it was a down day!...And Stochastics being Oversold can go on for a very long time...Just look at how Overbought the market was for months as it rallied off the March '09 lows...



One of my students asked me why I don't analyze the monthly chart?...I do, but since I'm a free member of stockcharts.com, I can only get daily and weekly charts...And I'm basically a very short-term trader, and all of my trades are Day Trades that usually only last an hour or two at most...Buy & Hold is obviously not working these days, as the market is right back where it was ten years ago...

Here is a four year/weekly chart of the $SPX I drew up yesterday, that shows a repeating pattern of three bearish Head & Shoulders chart patterns, and one bullish Inverse Head & Shoulders where the head (bottom) was put in last March 6th...This chart to me signals we are about to enter another serious downtrend sometime in the near future...It's obvious that the US recovering has stalled out, unemployment hasn't improved, consumer confidence and spending are low, and China and Japan are slowing down too...

Add to that the uncertainty of the situation in the Middle East this week, as Russia gets ready to load nuclear fuel rods into Iran's first atomic power plant which will eventually yield weapons grade uranium...There is the possibility that WWIII may be coming to a theater near us soon if Israel attacks Iran like they did when Iraq tried to do the same thing...And let's not forget the tension surrounding North Korea lately, and the deteriorating situation in the European Union...It appears there's all kinds of trouble on the horizon from many different areas...

Add all of the many negatives together, and it looks like the market will be headed down...That's what the Fundamentals and the Technicals are saying to me...Of course, that's just my humble opinion...I mean really...What kind of good news can we possible get that will make the market go up right now?...



Here is one more look at a chart from this weekend's video that shows the final Head & Shoulders from the chart above...It sure looks to me like the market is starting to roll over...



Good Luck to all...
zigzagman

VIDEO - Fundamental & Technical Analysis of the S&P 500's Daily & Weekly Charts:

http://www.viddler.com/explore/zigzagman/videos/31/

Technical Analysis of the S&P 500's daily and weekly charts, plus a look at the important Economic and Earnings Reports due out next week...

This week's video is more than twice as long the usual eleven minutes, because I feel a major turning point occured in the market this week...

This video is viewed best in Full-Screen Mode...Click the four arrows in the bottom right corner...Press the Escape key on your keyboard to exit back to Normal Mode...

Happy Trading this week...
zigzagman

A Plea for Freedom:

http://www.infowars.com/a-plea-for-freedom/

THIS IS A MUST READ!!!...IMO

It's one of the best articles I've read all year...

VIDEO - Fundamental & Technical Analysis of the S&P 500's Daily & Weekly Charts:

http://www.viddler.com/explore/zigzagman/videos/30/

Technical Analysis of the S&P 500's daily and weekly charts, plus a look at the important Economic and Earnings Reports due out next week...

This video is viewed best in Full-Screen Mode...Click the four arrows in the bottom right corner...Press the Escape key on your keyboard to exit back to Normal Mode...

Happy Trading this week...
zigzagman

VIDEO - Fundamental & Technical Analysis of the S&P 500's Daily & Weekly Charts:

http://www.viddler.com/explore/zigzagman/videos/29/

Technical Analysis of the S&P 500's daily and weekly charts, plus a look at the important Economic and Earnings Reports due out next week...

This video is viewed best in Full-Screen Mode...Click the four arrows in the bottom right corner...Press the Escape key on your keyboard to exit back to Normal Mode...

Happy Trading this week...
zigzagman