As of 05/17/2024   Indus: 40,004 +134.21 +0.3%     Trans: 15,501 -59.49 -0.4%     Utils: 951 +1.46 +0.2%     Nasdaq: 16,686 -12.35 -0.1%     S&P 500: 5,303 +6.19 +0.1%	YTD  +6.1%   -2.5%    +7.9%    +11.2%    +11.2%	Targets    Overview: 05/13/2024     41,000 or 38,500 by 06/01/2024   16,050 or 15,300 by 06/01/2024   960 or 900 by 06/01/2024   17,250 or 15,850 by 06/01/2024   5,500 or 5,100 by 06/01/2024
Chart Pattern Indicator: on 5/1/24

As of 05/17/2024   Indus: 40,004 +134.21 +0.3%     Trans: 15,501 -59.49 -0.4%     Utils: 951 +1.46 +0.2%     Nasdaq: 16,686 -12.35 -0.1%     S&P 500: 5,303 +6.19 +0.1%	YTD  +6.1%   -2.5%    +7.9%    +11.2%    +11.2%
Targets    Overview: 05/13/2024     41,000 or 38,500 by 06/01/2024   16,050 or 15,300 by 06/01/2024   960 or 900 by 06/01/2024   17,250 or 15,850 by 06/01/2024   5,500 or 5,100 by 06/01/2024
Chart Pattern Indicator: on 5/1/24

Recent Headlines Monday 5/20/24. Market Monday: Nasdaq, The Week Ahead Friday 5/17/24. Pattern Trading Setups for the Weekend. Thursday 5/16/24. Intraday Market Direction: Nasdaq Wednesday 5/15/24. A Look at the Chart Pattern Indicator (CPI) Tuesday 5/14/24. Slider Trading Quiz! Horn Tops

Older Headlines Monday 5/13/24. Market Monday: The Week Ahead Friday 5/10/24. Pattern Trading Setups for the Weekend. Thursday 5/9/24. Bitcoin Explored Wednesday 5/8/24. A Look at the Chart Pattern Indicator (CPI) Tuesday 5/7/24. Slider Trading Quiz! Rising Wedge (1 of 2) Monday 5/6/24. Market Monday: The Week Ahead Friday 5/3/24. Pattern Trading Setups for the Weekend. Thursday 5/2/24. Intraday Market Direction: Nasdaq Wednesday 5/1/24. Market Forecast Update Tuesday 4/30/24. Slider Trading Quiz!Head-and-Shoulders, Complex Tops Monday 4/29/24. Market Monday: The Week Ahead

Archives May Archive April Archive March Archive February Archive All Archives

Monday 5/20/24. Market Monday: The Week Ahead

• My Prediction
• A Brief Look Back
• Options Expiration
• Swing Traders: Pivot Points
• Earnings, Chart Patterns & Industries

My Prediction

The chart doesn't show much action so I looked back to find patterns to discuss. The chart is on the daily scale, of the Nasdaq composite.

In green is a scallop, but the official name is an inverted and ascending scallop. Those patterns have a straight run up (or nearly so) followed by a rounded turn at the top which retraces a portion of the prior up move.

Another inverted and ascending scallop appears in red. Both have upward breakouts (when price closes above the top of the pattern).

A third chart patterns appears in brown or orange, depending on how much you've had to drink. It's a complex head-and-shoulders top. This example has one left shoulder, two right ones, and a head in between. Often I ignore patterns with odd numbers of shoulders (they should be equidistant from the head in time, price, and number of peaks), so this one is weird. This one breaks out downward when it closes below a neckline that I didn't draw.

What does this mean for the index going forward? Nothing. However, a trend in motion tends to remain in motion, so look for the upward move of the last few weeks to continue.

A Brief Look Back

The following is a brief review of how the markets performed over time. The numbers refer to the close-to-close move in the Dow industrials.

For the Week...

Year to Date...

Options Expiration

No options expire this week.

Swing Traders: Pivot Points

The following is based on an SFO article in December 2004 by John Seekinger, titled, "Take a two-dimensional approach." He offers these tips.

• Seekinger doesn't look at the range of S2 to R2 as support and resistance levels. Rather, he considers them oversold (S) and overbought (R) areas.
• S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they lend more significance to the area.
• If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily S1 and daily R1 the next day.
• In a quiet market when traders are waiting for an important earnings announcement or economic report, look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
• A move outside of daily R1 or S1 usually does not mean a breakout.
• The odds suggest that the entire week's price action will remain between weekly R2 and S2.
• Avoid going long when the market moves above weekly R2 (it's overbought) and avoid going short when price moves below weekly S2 (oversold).
• Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
• Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1, respectively.

Here are the formulas:

Earnings, Chart Patterns & Industries

Earnings season is either underway or should be starting soon. The sessions could be more volatile.

Here's a symbol list of 104 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: MMM, ACN, ALKS, DOX, AFG, AMGN, ANIK, APA, ARW, ASH, BCPC, BKNG, BRKR, CLS, CX, CENX, CRL, CSCO, CNO, CMTL, CONN, CSGP, CSGS, DSGR, EOG, EXC, EXPI, FARO, FDX, FWRD, GME, GGG, THG, HL, HSIC, HOLX, JBHT, NSP, IBP, IIIN, IPAR, TILE, IPI, ISRG, JBLU, KBH, K, KELYA, KFRC, LH, LAMR, LNC, RAMP, MANH, MKTX, MTRN, MUR, NOC, OR, OXM, PDCO, PCG, PGR, RHI, RGLD, RES, SAND, SWX, UIS, WEX, WMB, WSC, WDAY, ZBRA, IYC, IXC, MXI, SLV, EWA, EWO, EWC, ECH, EWH, EWI, EWM, EWS, EZA, EWL, THD, TUR, EWU, GLD, XRT, VHT. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

The below industries were the best (rank 1) or worst performing of those I follow.

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and Training "Miles" (#Ad)

Friday 5/17/24. Pattern Trading Setups for the Weekend.

$ $ $

Here's a symbol list of 141 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: DDD, MMM, ABM, ACIW, ADTN, AMD, APD, ALGT, AEO, AXP, AFG, AMWD, ANIK, APOG, ARCB, ACGL, ARW, ASH, AGO, BSET, BAX, BKNG, BFH, BRKR, BBW, CACI, CNC, CI, CSCO, CNO, CGNX, CMTL, CONN, CSGP, CR, CROX, CSGS, CMI, DECK, DVN, DDS, DFS, EBAY, EQT, EXC, FLEX, FTNT, GME, GMS, GOOGL, GPRO, GES, HBI, THG, HQY, HSII, HELE, HP, HSIC, HUM, IBP, INTC, TILE, KBH, KEYS, LAMR, L, MGY, MAN, MCHX, MLM, MA, MTRN, MTRX, MGEE, MOS, MLI, MUR, MYGN, NWL, JWN, OMCL, PKG, PEN, PRFT, PCG, POR, PFG, PGR, DGX, RMBS, REGN, RGS, RNG, RCKY, ROG, SMG, SEE, SCI, STR, SWX, SWN, SXI, TGT, TPX, UNH, UNM, VFC, VMC, WLK, WMB, ZBRA, DDM, FXI, QQQ, IEV, ILF, EWA, EWJ, EPP, EWS, EWD, PHO, XLP, XLV, XLK, UNG, USO, VAW, MGK. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

You can find setups based on a Fibonacci retrace by clicking on the link.

The following patterns were found manually, not using Patternz. Mr. Bulkowski has excluded any securities he owns from appearing in the list. However, he may add any of the securities listed to his portfolio at any time, just as you can.

In the table below, the red and green colors are based on the historical breakout direction for the associated chart pattern. If a high and tight flag appears, the start and end dates highlight the flagpole only and not the flag.

For details about the chart patterns, click here.

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and Training "Miles" (#Ad)

Thursday 5/16/24. Intraday Market Direction: Nasdaq

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

$ $ $

I show a picture of the Nasdaq composite on the 5-minute scale.

At first glance, there wasn't a lot going on in this picture. However, after gluing on a few trendlines, a chart pattern emerges.

At A, an ascending triangle appears. Those have horizontal tops and up-sloping bottoms. They can break out in either direction, but is upward 63% of the time.

An upward breakout happened here. At B, the index gapped open higher, perhaps on favorable news about inflation. I think it looks good for additional rises, especially after going horizontal for a week.

$ $ $

I updated the 10-year forecast for the Dow industrials, Nasdaq composite, and S&P 500. click the link to see the pictures.

$ $ $

Here's a symbol list of 216 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: DDD, ADTN, AEIS, AES, A, ALB, ALGT, DOX, AMED, AEE, AEO, AME, AMGN, APH, ANIK, AMAT, ARCB, ANET, BALL, BSET, BECN, BZH, BERY, BBY, BIO, BIIB, BOOT, BMY, BRKR, BLDR, BG, CBT, CI, CONN, CROX, CCK, CMI, DECK, DVN, FANG, DDS, EXP, EBAY, EFX, EXC, EXPI, FICO, FIS, FE, FLS, FORM, FTNT, GME, GIS, GPN, GMS, GPRO, GES, THG, HELE, HP, HSIC, DHI, HOV, IDXX, IBP, ITGR, IPAR, TILE, INTU, IRM, JBLU, KBH, KMT, KEYS, KLAC, LEN, LLY, LMT, MHO, MGY, MAN, MKTX, MAS, MA, MTRN, MGEE, MU, MLI, MUR, MYGN, NBR, ^IXIC, NWL, NEE, NI, JWN, NOC, NOVT, NUS, OXY, OMCL, OR, PYPL, PEN, PCG, PPL, PEG, PHM, QCOM, REGN, RGS, ^GSPC, CRM, SBH, SLB, SCHW, SMG, SEIC, STR, SKX, SMAR, SWX, SWN, SR, SUM, SNPS, TRGP, TDY, TFX, TER, TXN, TKR, TOL, TZOO, TG, UHAL, UNH, VLO, VECO, MDRX, V, VMC, WLK, WMB, IAI, IHE, IDU, DDM, FTEC, QTEC, FXL, QQQ, ICF, IYH, IAT, IEV, IGV, MXI, IXN, SOXX, SLV, IEO, IYF, ITB, EWK, EEM, EWG, EIS, EWI, EWM, EWW, EZA, EWY, EWP, EWD, EWL, EWT, EWU, QLD, IBB, PBE, PHO, SSO, XLF, XLV, XHB, XLB, SPY, XLK, XLU, USO, SMH, VHT, VAW, MGK, VONG. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

The following table shows where Fibonacci retrace values of the day's high-low range are plus pivot points, calculated on the Nasdaq composite, sorted by value. When several are near each other (small differences), the area might act as support or resistance.

-- Thomas Bulkowski, author: Invest for Two-Comma Wealth and Training "Miles" (#Ad)

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My Stock Market Books Invest for Two-Comma Wealth   Chart Patterns: After the Buy Encyclopedia of Chart Pattern, 3rd Edition Fundamental Analysis and Position Trading Getting Started in Chart Patterns, 2nd Edition Swing and Day Trading Trading Basics

My Novels Training "Miles"   Bumper's Story Head's Law Remember Me

Copyright © 2005-2024 by Thomas N. Bulkowski. All rights reserved.

Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Privacy/Disclaimer ☰