Well, it has been choppy trading the last several trading sessions, but overall the trend has been down.  The question now is is this just some profit taking and an opportunity to buy in at a “better price”, or are these levels going to bury those buying into them?

Well, since videos are always a good way to get some analysis and education, here is another from Adam.  It has some compelling arguments for a market top, and my own analysis points to further selling at this time so I think this video is timely and important for you to watch no matter if you are an investor or a day trader.

Here is the video:  Has the S&P Topped Out?

http://www.ino.com/info/469/CD3784/&dp=0&l=0&campaignid=3
Have a great night everyone!

Cory Mitchell, CMT

Before I get into the S&P analysis, here is a quick video from the other day which covers the NASDAQ.  The NASDAQ was strong compared to other benchmarks on Friday.  The video was recorded a couple days ago but is still valid and has some great content…always educational and informative.

Is the Nasdaq in Thin Air: http://www.ino.com/info/466/CD3784/&dp=0&l=0&campaignid=3

OK…and now to the S&P analysis for the upcoming week.

The markets tested the 1100-1100 area this past week, and have so far failed to push above it. While Friday was a down day, the Thursday lows held and we saw strong buying into the close, showing traders are still reluctant to head into the weekend on the short side.

The trend is still higher, but the market is losing momentum. This has been apparent on the RSI for some time, but despite lower highs on the RSI the market has pushed higher overall, therefore a divergence is only worthwhile once we see a break in price. The divergence does signal a weakening and warrants some caution on the long side.

Friday’s trading formed a bearish engulfing pattern on the daily chart, coupled with the fact it occurred at a pivotal resistance level, it does indicate a pullback. Again, price will need to confirm. A drop below 1073 (especially a daily close) would confirm at least a short term retracement.

A move below 1073 is likely to target 1050-1045. A drop below 1040 would break daily trendline support, but further support is likely by 1020. A drop below that level indicates a larger move down.

Since we are waiting for price to confirm, another move higher is still possible, but not as likely as a move lower. A move above 1102 will target 1111. A break above that will target 1125-1130.

Happy Trading,

Cory Mitchell, CMT

Imagine not having access to any financial news stories. The only information you have about the market is the market itself.

Would you be a better trader or a less successful trader?

I think you would be a better trader. I have often said that the market is the best news provider in the world. It’s up the minute and it reflects both domestic and international issues. The success of our “Trade Triangle” technology is based upon market action.

In my new short video, I’ll take a big look at the S&P 500 market and where I expect it will head in the months to come.

http://www.ino.com/info/434/CD3784/&dp=0&l=0&campaignid=3

We all need to be prepared for what lies ahead, and this video is worth watching for that very reason.

There is no need to register for this video and you can watch it with my compliments.

All the best,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

Cornelius Luca has come INO TV Free!  Now you can get this enormously respected analysts seminar for free, as well as many others!

It is definitely worth checking out, and it only takes a moment.

Here is the video: http://www.ino.com/info/36/CD3784/&dp=0&l=0&campaignid=9

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

It has been a while since I posted on this pair, and it is a great one to trade as it generally has a large daily range.  Anyway, I noticed something glancing at the chart and thought I would post it.  The key thing  below is the “old trend” line.  If you draw a trend line, and the price breaks through it, keep it on your chart.  In the future the pair will often stop exactly near the trend line.

Check out the chart.  All the way up this trend line was respected when price fell and then bounced.  Then prices broke through the bottom of the trend line.  And when the pair bounced the trend line stopped the upward movement (circled) and pair moved back lower.  But here is the analysis and chart….

EUR/JPY – Aug 19

Yesterday the pair tested and respected an old upward sloping trend line (broken last week), quickly retreating.  In early trading today it has taken another run at the trend line and the highs for yesterday but has so far failed.  This makes a further slide probable.

Initial support is at 133.40 and 133.10.  A break below this level indicates a move for 132.50.  Further support is at 132.00.

A rise above 135 is less likely, but will initially target 135.50.  Target and resistance beyond is at 136.00.
~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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Source: Forexyard, EUR/JPY - 2 Hour

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SBUX (Starbucks) is a popular stocks for long-term and short traders.  After a long fall SBUX has been doing very well as of late, but ultimately the question becomes:  Will it continue to do well?  Check out the video, its totally free, and not only will get a professional analysis of SBUX, but you will also be introduced to some technical analysis tools.  If you like what you see, you can check out a free trial of the services offered by clicking on the Start Trial button.  So check out the video below, and every success to you.

Got Time For Coffee? (new video)

http://www.ino.com/info/430/CD3784/&dp=0&l=0&campaignid=3

~Cory Mitchell, CMT

P.S.  Want more trading education?  Get 4 free trading seminars here:

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Be Sure to check that one out!

Hello everyone, this is Dan Gramza and welcome to Gramza Market
Studies Technical Tip.

Well today we’re going to be talking about selling rallies. Now what
does it mean when people say, “sell the rally” when you want to
get into a trade? Or they sell a pull back? Or you hear things like,
“The Trend Is Your Friend?”

Well we’re going to explore this here in just a minute. I want to show
you the technique and I want to show you some examples of how
these markets behave in those settings.

I want to show you an example, but before I can talk to you too much
about this example I need to define a few things for you. First candles…
the approach that I use with Japanese candle charts, and that is what
you’re looking at here, is not the standard approach. So from my
perspective, I don’t focus on patterns, I focus on behavior. If we see a
green candle that represents buying, that means that the closing price is
higher than the open.

If you see a red box that represents selling it means
that the closing price is below that opening price. If you see a white line on top
that’s called a shadow, I think that represents selling. If you see a
white line on the bottom that represents buying. Now with that in mind, the
sizes of the bodies and the shadows tell us about the degree of buying or
selling.

Now let’s talk about this set-up here…

To get the rest of the tips, please visit the link below and WATCH me!
http://www.ino.com/info/36/CD3784/&dp=0&l=0&campaignid=9

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On the longer term charts this pair has really leveled off and is in a definite range.  Within the range there are potential trading opportunities when we shrink the time frame and look for set ups on these smaller time frames.  In this post we will look at the 1 hour chart.

Currently there is a descending wedge which offers a couple of trading options.  The pair recently tried to test the upper trend line, but failed.  This sets up a potential short with a target being the lower trend line.  At this moment the reward for risk is not that attract for this trade, but if the upper band is tested again and does not definitively breakout, then the the reward to risk will improve greatly.

If a breakout of the wedge where to occur, the profit target would be about 85-90 pips from the breakout point.  With trend lines where they are at currently, a breakout would test either the July 6 High, of the July 1 Low.  Although as time progresses it is more accurate to establish the profit targets based off the 85 pip target from the breakout price, instead of the using those swing high and lows as targets.

Please read the latest How to Use the Trade Ideas blog if you understand the analysis. If you still have questions after, feel free to comment

Source: Forexyard, USD/CHF 1 Hour Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
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So I was about to do an analysis of the USD/JPY and then I was sent this video which is basically exactly what I was going to say.  If you follow any of my analysis, I use a a lot of chart patterns.  You can learn what patterns I like to trade, and how to trade them in my book, or you can  watch these guys videos.  Often they provide a very similar outlook to my own views, and I feel fully confident in providing their analysis,videos and potential service to you.  They provide a fantastic service if you are interested, or you can just enjoy the videos with no strings attached.

This video looks at the longer term view of the USD/JPY forex currency pair, and where it is likely to go.  The video is great in that it shows how to technically analyze forex charts, and then also gives a bit of an intro to the methods that they use over at Ino.  Great stuff!  I think these video are great, they are free, but if you are interested in learning more you can sign up for a free trial to one of the most premier services (you get so many things with a subscription!) in the trading industry.  Or…just simply enjoy this great totally free video analysis of the USD/JPY pair.

http://www.ino.com/info/400/CD3784/&dp=0&l=0&campaignid=3

All the Best in your trading,

Cory Mitchell, CMT

It is June 9 and I just got back from a short trip which was why there was no updates over the last week. Some large moves occurred and hopefully you were all able to capture some profitable trades.

The GBP/JPY has formed an ascending triangle which provides a potentially good trade set up. This pair has extreme movements at times, and therefore the triangle is not perfect but still very tradable.   I have drawn two lower trendlines on the chart below, which are both potential entry points.

A move above 159 would be relatively straight forward and would target 160. An intermediate target of 159.60 can also be used.

A break lower will currently at 158.60 (higher rising trend line) or 158.40 (lower rising trend line). A break below the higher rising would mean a profit target of 70 pips from the breakout price. A break below the lower rising trend line would provide a target of 100 pips from the breakout price.

Please read the latest How to Use the Trade Ideas blog if you have questions. If you still have questions after, feel free to comment.

Want to know more about trading chart patterns and how to increase your odds of success? Check out my new ebook…you can find more information on it here

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!