Directional Analysis

Just a quick recap of what happened yesterday through the eyes of the Exchanged Traded Fund SPYs, which tracks the S&P 500. All the market did, like I had pointed out on my last update, was a small pull back to back test the break out of the channel.  So far pre-market it looks like the markets could have enough force to break through the Symmetrical Triangle pattern I have pointed out on my last few updates.  The area to watch would be the highs from yesterday in the S&P 500 futures, once the market breaks through that area, we could be seeing a break out of the Symmetrical Triangle. It would be interesting to see if the markets have enough force to have a Santa rally!!!

After hitting the bottom of the symmetrical triangle, which I had predicted to go to a few days ago, the S&P Futures blasted off to break out from the down trend channel. We will have to see if there is any consolidation or the momentum will continue. I expect some sort of flat consolidation for the rest of the week and early next week having another big push to the upside. The US Dollar is starting to break down, which will just add fuel to the end of the year rally in the equity markets and also the commodities. I like the energy sector the best to have the biggest gains next year, although the Gold and Silver Futures are looking really good right here.

So after having a crazy end of the month rally last month, now it looks like the markets are going to go to zero! Well, here is the real matter. The US Dollar, Gold/Commodities, and The Equity Markets are all working in sync. In this video I show how the have all moving together and were we should be looking for all three to end up at.  There are always times where the technicals can over shoot targets, patterns, and or Support/Resistance areas, but this is why we always look at the bigger picture of where markets have come from and where they are heading. I will keep a close eye for any changes, until then not much has changed and this video will show why.

A quick pre-weekend update reviewing the action from the past week and making sense of the volatility using Technical Analysis.

So far all three markets are working interrelated to each other. Meaning, they move either opposite or conjunctive to one or the other.  This is the reason why I keep looking at this markets for a signal and a direction of the equity markets. Watch this video and see how their relationship is giving technical signals to traders and the market makers.

Earlier I posted a video where I was talking about an “Energy” ETF  but it was the Financial ETF. My appologies, I kept looking at both ETF’s and I just left the wrong one up for the video. So this whole video is all about the XLE, which is the real Energy ETF. Until next time.

On this video I just keep everything on perspective on why the technical are telling me we will be having a Year End Rally (or YER).  I am keeping an eye on the balls which have been the leading indicators why we will be heading up and also on the sector I am liking the best (as far as technicals are concern). Other than that, happy December 1st and talk to you soon.