The Fluid Trader

We had an interesting week in the 3 indexes where we saw up and down days forming a triangular consolidation on the daily charts.  We did see slight gains in the Dow and S&P 500 and a slight loss in the Nasdaq.  Let’s take a closer look.

Dow Jones:

Daily:

The Dow Jones Industrial index continues its triangular consolidation as it builds more pressure.  You can see that price is still contrained in the triangle and it is closing.  It’ll be interesting to see where we fall next week in terms of this price pattern.  The sentiment of the index remains bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a now descending 200 MA.

Weekly:

As we zoom out to see what is going on the in the weekly price action of the Dow, we see that the index had another slightly up week.  Volume is dipping as price is still in a somewhat lateral trading range (starting to create an ascending triangle).  The 20 MA just crossed below the 50 MA going downward.  We are still in a fairly new confirmed downtrend.  Let’s watch how price will move next week and to see if an ascending triangle is being formed.

NASDAQ:

Daily:

The triangular consolidation continues to form in the index.  Price is building more pressure in this condolidation and we’ll see what will happen when it does breakout.  Overall, we still are very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a now descending 200 MA.

Weekly:

As we take a zoom out, we see the Nasdaq had a small loss this week.  We are still in a newly confirmed downtrend but we seem to be trading in a lateral fashion with price breaking below the support and volume is descending.  The 20 MA and the 50 MA have crossed each other towards the downside.

S&P 500:

Daily:

The S&P 500 is still forming the Triangular consolidation and like the other indexes, the price is building much more pressure.  It will be interesting when we see a breakout.  We are still very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a now descending 200 MA.

Weekly:

The S&P 500 was able to manage a gain this week from the previous week’s close.  We see price forming more in an Ascending Triangle and the volume descending in the previous weeks.  We are looking bearish in this timeframe with a newly confirmed downtrend and the 20 MA crossing below the 50 MA.  The 200MA is still continuing its ascent, however.

We saw gains for the week in the Dow and S&P 500 and a loss in the Nasdaq.  Notice that the daily charts are continuing with the triangular consolidation and a new ascending triangle forming in the Dow and S&P 500 with a lateral consolidation continuing to form in the Nasdaq in their weekly charts.  We should see a breakout happen sometime this week! Stay tuned and find out!  In the meantime, here is a summary:

Intermediate Trend:
Dow - Down
NASDAQ - Down
S&P 500 - Down

Long Term Trend:
Dow - Down
NASDAQ - Down
S&P 500 - Down

Be careful and Trade Safely Tomorrow!