Thursday, September 07, 2006
Technical Indicators
Ease of Movement
The Ease of Movement Indicator was designed to illustrate the
relationship between volume and price change. It shows how much volume is
required to move prices.
High Ease of Movement values occur when prices are moving upward with light
volume. Low values occur when prices are moving downward on light volume. If
prices are not moving or if heavy volume is required to move prices then the
indicator will read near zero.
A buy signal is produced when it crosses above zero (an indication that prices
are more easily moving upward ). A sell signal is produced when the indicator
crosses below zero (prices are moving downward more easily)...
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NASDAQ Chart of the Day
IMOS
has formed a very beautiful saucer pattern at the lows of the latest decline.
This pattern has a lot of bullish potential and could really pack a punch to
the upside. Watch 6.40 for signs of strength ahead.
Daily Trading Signals
NYSE Chart of the Day
ECL
has broken a very clear and solid lower trend line to the downside at 44.00.
The stock also took a breakaway gap down, which adds to the bearish potential
of this stock. Look for continued weakness below 44.50.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 9/6 for Thursday's market
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Key DOW Levels for 9/7
|
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UP
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Above 11,450
|
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DN
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Below 11,380
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Back at 11,400
- Dow sells off from highs, closes back at key 11,400 fulcrum. The
index ended the day with a 63 point loss, but could be on the verge of a much
bigger decline ahead.
- The NASDAQ and S&P each sold off heavily to begin the day, but continued
with selling pressure to the Close. Look for potential continuation patterns to
form to indicate continued weakness.
Summary
The Dow ended the day with a solid loss today, but is currently holding at the
key 11,400 fulcrum. Watch this zone for early direction tomorrow. A break of
the major lower trend line at 11,380 could really open the gates for the bears.
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Trading Education
Tutorial
Consolidations
Sideways Movement Gives Indication of Future Price Direction
A consolidation is a place where buyers and sellers are very
closely matched in numbers. As the battle ensues, others notice that the market
is consolidating, and begin considering to get on board. As soon as a break
from the consolidation occurs, the latent buyers or sellers usually begin
taking positions.
Read
More...
