With the latest push upwards, I redrew the trendlines from the March low and just touching the lows that have been set. This shows the major uptrends. The way I determine if the market is in an uptrend or in a downtrend is by a 3 Exponential Moving Average cross. For the major trends, the 3 time periods are 8, 21, and 55. I like these because of the correspondence to 1 month on the 21 day moving average. I will explain more about that in a different post. When the 8 day EMA is below the 21 day EMA which is below the 55 day EMA then the trend has changed to a down trend. Similarly when the 8 day EMA is above the 21 day EMA which is above the 55 day EMA then it is in a uptrend. I realize that the uptrend and downtrend come a little late that is why I will use 3 different time frames. Tomorrow I will show the mid term time frame. The DJIA could not break the 14,000 mark. It looks like this week could be a turning point for the market with it be expiration week.
Very similar with the S&P. It actually close lower today. Tomorrow will be a telling day.
The Nasdaq, I put in parallel lines to show the trendlines. Notice that it is not close to the line if you do the parallel lines. This may not be as close as it should be, but shows that it is not gaining as fast as it did originally in the trend.
The Russell 2000 has not really made a new high. With the loss today, it will be interesting to see if it can cross 855 or if it is headed back down to 820 where it should hit significant resistance. I also closed my short postion on the 870/880 July vertical call. Now I will be watching my Iron Condor that is set for August. I am just now learning how to deal with the Options risks. I did ok this on the July Iron Condor that I purchased the end of May.
The Nasdaq, I put in parallel lines to show the trendlines. Notice that it is not close to the line if you do the parallel lines. This may not be as close as it should be, but shows that it is not gaining as fast as it did originally in the trend.
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