About Andrew Thrasher

Andrew Thrasher, CMT is an Investment Analyst for an asset management firm in Central Indiana. He specializes and writes about technical analysis as well as macro economic developments.

Find Intraday Turning Points With The Advance-Decline Line

Each week in my Technical Market Outlook post I show a daily chart of the NYSE Advance-Decline Line. I think this is a great tool for ‘monitoring’ the health of the equity market, but it can be used on multiple time frames. This is the topic of my TraderPlanet post for this week. I show how we can use the A-D Line and the Relative Strength Index to find potential turning points in the market on short-term 30-minute chart.

Here’s a piece:

Most recently we saw price begin to find some support near the 1816 area [for the S&P 500 ($SPX)]. Each of the three tests were accompanied by higher lows in the RSI indicator as well as higher lows in the Advance-Decline Line. This told us that momentum was rising and more stocks were advance vs. declining as the price action began to form a short-term bottom. Over the next couple of days we saw the S&P 500 rise over 50 points.

Read the rest: Advance-Decline Line: Find Intraday Turning Points (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

Weekly Technical Market Outlook 4/21/2014

I hope everyone had a good weekend and a Happy Easter. I was out-of-town visiting family this past weekend so I did not have time to write a full Technical Market Outlook, but I do want to share a few thoughts….

-With the bullish move we had last week the trend of the S&P 500 ($SPX) is back above its 20-day and 100-day moving averages. The 100-MA has been an important level of support for the current up trend and it was good to see it hold on that short-term drop.

-Breadth has improved along with momentum as the Relative Strength Index held the level of support I mentioned last week. The NYSE Advance-Decline Line hit a new high but the Common Stock-Only Advance-Decline Line has yet to break out.

-This week I’ll be keeping a close eye on commodities. Specifically the PowerShares Multi-Sector Agriculture ETF ($DBA), which is closing in on its March high of about $29. I’m looking to see if ag commodities can break out or if the divergence that may be developing in momentum and volume keep this asset class from experiencing a second leg higher.

Be sure to check back later this week I’ll have some more content up on the blog. Have a great week!

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

Did We Just See A False Break in Emerging Markets?

Last Friday I tweeted out this chart that shows the ratio between the iShares Emerging Market ETF ($EEM) and the S&P 500 ($SPY). I noticed that the ratio was approaching previous support as shown by the red arrows and the blue line. This was an important juncture for emerging market bulls, they needed to break this level to keep the music playing.

Well it seems the bears bulled the plug as the ratio between emerging markets and the S&P 500 produced a false break as it made an attempt to keep from turning previous support into resistance. At the same time we saw the relationship’s Relative Strength Index (RSI) work off ‘overbought’ status which is a sign of heavy buying as traders pushed up the relative performance of $EEM against $SPY. Going forward I’ll be watching to see if we get another rest of this resistance or of we see emerging market once again under perform U.S. equities and we get a re-test of the March low.

EEM SPY

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.