As of 03/24/2023   Indus: 32,238 +132.28 +0.4%     Trans: 13,707 +18.91 +0.1%     Utils: 911 +28.13 +3.2%     Nasdaq: 11,824 +36.56 +0.3%     S&P 500: 3,971 +22.27 +0.6%	YTD -2.7%    +2.3%   -5.9%    +13.0%    +3.4%	Targets    Overview: 02/14/2023     30,900 or 33,100 by 04/01/2023   15,350 or 13,400 by 04/01/2023   940 or 860 by 04/01/2023   12,450 or 11,000 by 04/15/2023   4,100 or 3,800 by 04/01/2023
Chart Pattern Indicator: on 3/22/23

As of 03/24/2023   Indus: 32,238 +132.28 +0.4%     Trans: 13,707 +18.91 +0.1%     Utils: 911 +28.13 +3.2%     Nasdaq: 11,824 +36.56 +0.3%     S&P 500: 3,971 +22.27 +0.6%	YTD -2.7%    +2.3%   -5.9%    +13.0%    +3.4%
Targets    Overview: 02/14/2023     30,900 or 33,100 by 04/01/2023   15,350 or 13,400 by 04/01/2023   940 or 860 by 04/01/2023   12,450 or 11,000 by 04/15/2023   4,100 or 3,800 by 04/01/2023
Chart Pattern Indicator: on 3/22/23

Monday 3/27/23. Market Monday: The Week Ahead

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

My Prediction

I show the Nasdaq composite on the daily scale.

At A is a chart pattern called a broadening top. That's where the price swings widen over time, forming what looks like a megaphone.

B shows a similar pattern, called a broadening bottom. It's the same as the top version except for the direction price enters the pattern.

Broadening bottoms (B) breakout upward 60% of the time, according to my research of the chart pattern. That's not much above random, but that's what I found when studying over 1,000 of them.

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 over.

Here's a symbol list of 97 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ACIW, AYI, ABC, APA, ASH, AZTA, BALL, BECN, BKH, BSX, CPB, CLF, CLX, CAG, COST, COTY, CR, CW, FTV, HE, HL, HSIC, HOLX, DHI, IDA, IEX, ILMN, IIIN, IPI, ISRG, JAZZ, LHX, LNC, LPLA, LXU, MANH, MTRX, MDC, MGEE, MSFT, MCO, MS, ^IXIC, NEWR, NOVT, OMCL, OXM, PYPL, PEN, PRFT, PKI, PINC, KWR, QCOM, RMBS, RRC, ^GSPC, SLB, NOW, SKX, SMAR, SWN, SCS, TDOC, TDY, TFX, TMO, RIG, WAT, WOLF, WDAY, IAI, IYK, IHE, IDU, DDM, FDN, QQQ, IYH, IYZ, IHI, EWO, EWW, EWT, QLD, DBA, PHO, SSO, XLV, SPY, USO, VHT, 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.

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

-- Thomas Bulkowski

Friday 3/24/23. Pattern Trading Setups for the Weekend.

$ $ $

Here's a symbol list of 129 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ANF, ACIW, AFL, ATSG, ALK, ALB, AEL, ABC, BECN, BERY, BKH, BAH, BCO, CNC, CF, CVX, CI, CLF, CLX, CNA, CAG, GLW, COTY, CRH, DVN, FANG, DSGR, BOOM, ELV, EOG, EVRG, EZPW, FDS, FDX, FCX, GMS, GFF, HL, HSII, HON, IPI, NVTA, KALU, KBH, LH, LAMR, LDOS, LLY, LNC, RAMP, LXU, MANH, MRO, MTDR, MTRX, MDC, MDT, MLKN, MOS, MUR, MYGN, NBR, NFLX, OXY, OMCL, OXM, PATK, PEN, PXD, PPL, QCOM, RMBS, RJF, REGN, ROL, ROST, R, SLB, SAIC, NOW, STR, SMAR, SCS, TDOC, TFX, TPX, TJX, TDG, TZOO, TWLO, SLCA, UNH, MDRX, WERN, WSM, WDAY, IYE, IEZ, IHE, FDN, FXI, IYH, IHF, IYZ, IGE, IEO, IYF, IHI, EWK, EZA, THD, EWU, PBE, PEJ, PXJ, IXC, IXN, XLY, XLE, XLF, XRT, XAR, USO, VHT, VIS. 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

Thursday 3/23/23. Cryptocurrency Ethereum: Broadening Top

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 cryptocurrency Ethereum on the daily scale.

This is almost a picture perfect image of a broadening top chart pattern. It appears as price trends upward into the start of the pattern.

From there, it makes higher swings upward and lower swings downward, looking like a megaphone, B.

At A, the currency has paused. This could be a partial decline. That's when price attempts to reach the bottom line, doesn't make it, and breaks out upward immediately. The signal is correct 72% of the time.

Is that what will happen this time (an upward breakout)? Answer: I don't know. The probabilities were for stocks, not cryptocurrencies.

$ $ $

My neighbor backed into his neighbors mailbox, looked at it, and walked back to his pickup, parked it, and started washing his car as if nothing had happened.

He didn't leave a note, so I sent him an email to do the right thing and tell of the accident. Will it work?

$ $ $

Here's a symbol list of 202 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ABT, ACIW, ADBE, ADTN, AMD, AFL, ATSG, ALK, ALB, AA, AXP, ABC, AON, ACGL, AWI, ATO, ADP, AVA, AXS, BBBY, BAH, BG, CACI, CNC, CDAY, CF, CVX, CI, CLF, CLX, CNA, CAG, CONN, GLW, COTY, CRH, CROX, CCK, DHR, DVN, FANG, ^DJI, EIX, ELV, EOG, EFX, EVRG, EXPI, FDS, FDX, FE, FORM, FCX, GME, GD, GE, GMS, GFF, HQY, HL, HSII, HNI, HON, IDA, IDXX, ILMN, IBKR, IPG, NVTA, K, KBAL, KLAC, LZB, LH, LRCX, LDOS, RAMP, MANH, MRO, MA, MTDR, MTRX, MDC, MDT, MRCY, MGEE, MOS, MUR, NBR, NJR, NEE, NI, JWN, NWPX, OXY, OMCL, ON, OTEX, OXM, PATK, PAYX, PEN, PNW, PXD, POR, QCOM, RMBS, RJF, ROL, ROST, R, SLB, SAIC, SMG, SMTC, NOW, STR, SMAR, LUV, SR, SPSC, SXI, SCS, TDOC, TFX, TPX, TMO, TJX, TDG, TZOO, TWLO, UNH, VECO, VRTX, V, WSM, WWW, WDAY, XEL, IYC, IYE, IEZ, IDU, FDN, QTEC, FXL, BOTZ, IYH, IHF, IYZ, IGV, SLV, IGE, IEO, IYF, IHI, EWK, EEM, EWQ, EWG, EIS, EWI, EWS, EWL, EWT, EWU, QLD, PPA, PEJ, PXJ, IXC, IXN, ILF, XLY, XLE, XLF, XLV, XRT, XAR, XLK, XLU, VHT, VIS. 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

 

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