Smart Chart Investor

Beyond Buy and Hold: Using Technical Analysis to Reduce the Risk of Long-term Investing

Market Updates

SONO at Important Level

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I highlighted Sonos (SONO) Inc on June 10th. It is up about 7% since and running into a very important price level ($12), resistance. See daily chart to see how price has reacted to this level. Price has failed this price level many times and may fail again, however, the relatively long base from early this year is definitely attracting interest. If price can break above $12 it could sure run to $13 in a hurry. I'm going to hold and watch how price reacts to current levels. Please note all … [Read more...]

Reflections

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One chart will tell you all you need to know for the week...kind of. The 15 minute chart of the S&P 500 Index ETF (SPY) shows price action flatlined the entire week (I put the weeks price action inside the rectangle). This is good. This is miniature consolidation, a rest. This is normal. Price action is often reflective. Oversold often results in overbought. Steep collapses often result in steep spikes. All of this recent "steepness" needs a break. Traders and investors alike need … [Read more...]

All Clear?

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I don't think I can be any more accurate than I have been about the broader market (SPY) recently. We got the dip I have been warning about and we got the steep ascent I was expecting at one of the two reversal levels I pointed out (the higher one). The lower level reversal I have been sharing with you would have been stronger, however, please note the speed at which price has moved from the upper reversal level on Tuesday. Up over 5% in four days. Strong like bull. Is this the all clear … [Read more...]

Potential Flush Next Week

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I'm grabbing a quick early morning moment to review Friday's price action as I was traveling yesterday. Well, you can't say I didn't warn you. Friday was a face ripper. More support broken. Descent is getting steeper. Hold on. I think we are almost down. Hard deck looks to be SPY 265/270. This is never easy. We are likely to get a final flush down soon. That would actually be OK as, if we are not in a full blown nightmare, it would get so oversold it would bring the buyers back in to … [Read more...]

Recent Market Updates