Determining Market Condition

A look at what forex traders need to know about the currency of Australia, the Australian Dollar.

Yesterday’s move higher showed not only good buying interest, but was also enough to push the S&P beyond the first line of resistance we had marked in by way of the March top-side trend-line. No issues at all pushing on through. We’ll look to see how the market responds to it on any dip which may unfold from here. The move higher now brings the underside of the November slope into play. As stated the other day, both of these overhead lines given they are running with the direction of the prevailing trend, are not viewed as the most steadfast forms of resistance. But potential resistance, nevertheless. With that said, if the market is ready to launch higher in a similar fashion as it did during February we may see the S&P tear through the November slope with relative ease.

But again, to reiterate, not a big fan on this end of paying up into momentum; choosing, rather, to buy on dips. This means those traders looking to get long may have to be nimble and establish positions on intra-day dips and single-day declines (Keep in mind the March top-side trend-line as first potential support.) Overall, risk reward at this moment is not the most compelling.

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Since Tuesday morning when global markets initially reacted lower on North Korea’s launching of a missile over Japan, we’ve seen the market view weakness as a buying opportunity. The DAX broke down to its worst levels since March, but has rebounded a bit. The breakdown came from a triangle pattern we were discussing as likely to lead to lower prices, but selling from the formation has proven to be a one-off event thus far.

While the market broke below an earlier-month swing-low on an intra-day basis, the break was somewhat recovered for a closing print just above the support threshold. So far the bounce is being driven by not only a broad rally in risk but also with the help of a weaker euro. The negative correlation between the DAX & euro(trading in opposite directions of one another) has been significant, with the one-month correlation reaching below -90% during both July & August. It’s also been the longest stretch of inverse correlation since the end of 2015, very beginning of 2016. Correlations are relationships which can fall in and out of love with little warning, and on that, while it is generally true the euro and DAX trade inverse to one another to one degree or another, risk is rising that the two could trade together at some point in the not-too-distant future. Bottom line, don’t get married to the correlation, but simply keep it in mind.

Turning to the techs-only, the DAX is nearing a trend-line running off the June record high and ‘head’ of a ‘head-and-shoulders’ formation which has acted as a technical guide for much of the past month. The trend-line is first up for the market to conquer, but even with a breach above we will need to see the area around 12300 overtaken to put wind in the sails for longs. That’s still quite a fair amount of distance away. Renewed weakness will bring back into play the weekly low at 11868 near the March low at 11850. Below there, not a move anticipated to take shape at this time, we could finally see the market trade down to the measured move target of the H&S formation near 11600 and an actual level of support around the 11480-mark.

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UniAbsoluteMarket_v2.1 600+ indicator is on this post. This is the updated UniAbsoluteMarket indicator (regular version and for using in EAs) which corresponds the latest version of the UniAbsoluteStrength indicator. The indicator is having ability to find 8 market conditions: Bull Market, Bear Market, Correction, Bear Rally, Choppy Market, Sideways Market, Overbought Market and Oversold Market.

The S&P 500 dropped 0.67% on Monday, in the largest decline since last September. Part of the decline was the 2.1% drop in the stock of Apple, Inc. (AAPL), which was a drag on all of the major averages, as well as the technology sector. The largest holding in the Technology Select Sector (XLK) is Apple, with a portfolio weight of 13.74%.

The stock market declined even more sharply on Tuesday with the Dow Industrials and S&P 500 dropping more than 1%. Apple was down another 0.52% to close at $167.05.

Investors are now even more focused on the earnings for Apple, which are scheduled to be released after the close on February 1st. Many other tech giants, including Microsoft Inc. (MSFT) and Facebook (FB), are also reporting this week, but Apple has garnered most of the interest.

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Tata Motors stock - ready for bullish reversal: if the price breaks last month high at 484 to above so the daily bullish reversal will be started -

State Bank of India stock price.
Bullish breakout: the price is testing the last month high at 294 to above for the key resistance level at 298 as the next target to re-enter.

Examining the weekly price charts to estimate possible support levels for the major stock market indices.

It's that late January/early February spot just below 2550 where buyers took over the last time stocks dipped like this. On this chart, you can see the obvious negative divergence between the increasing prices into September and the decreasing relative strength indicator above the price chart and the moving average convergence/divergence (MACD) below it.

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Hammer_v1 - expert for MetaTrader 5

This advisor is an advisor assistant in manual trading. Powered by rebound from levels. The levels here are the horizontal line objects that the user draws manually on the chart. It is allowed to use one object for opening BUY positions and one for opening SELL positions. The main thing is that the names of the objects Horizontal lines correspond to the specified parameters HLine Buy Level name and HLine Sell Level name .

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Statistical Methods for Trend Detection thread is this one. The thread with indicators, for example - Mann-Kendall test indicators for Metatrader 4.