TSX, Beaten Down Hard, Getting Up from the 10 Count?

The Toronto Stock exchange has taken a beating the past 6 weeks, the question is are we in for more? Let's take a look at the weekly chart. In the chart below it would have been nice to find support where the downward arrow is pointing, but that has been broken. The next level of substantial support is around the 12,900 level....remember how much trouble we had breaking out from there, you can see it in the chart and the line that has the upward arrow pointing to it.

However, the daily chart has some encouraging signs. RSI has turned up, the upwards pointing arrow....and we had a positive outside day, meaning the positive candlestick chart engulfed the previous day. Outside days when the market is positive are nice signs to see. We may have a little more to go, but signs are starting to point to an end of the carnage, the TSX is getting to it's knees on the 6 count...

TWTR - Twitter Trending Up in a Dicey Market

Twitter is trending, like their popular hashtags, the company is making some noise in this difficult market. Yesterday there was some indecision with a imperfect Doji Star candlestick pattern, today the price was up in a volatile, negative market. The 50 day moving average crossed the 200 day a couple weeks ago and the RSI is trending up, all positive signs in a tough market. So what gives?

Well, it looks to me that Twitter has some strong support in the mid 40 range, that is where it closed after the first day of trading, that brings us to the weekly chart.

Way on the left hand side you can see that first week of trading in TWTR. It has been almost a year....almost a year you say, isn't that when many portfolio managers say they start to look at companies. Hmmm, perhaps more interest is developing ahead of the anniversary, especially considering that TWTR has recovered nicely since the summer. 

Given the tough market maybe add a small position and see if it continues to beat this recent negative market.

S&P 500 looking messy in the short-term, signs of longer term problems

The daily chart for the S&P 500 looks fairly dismal, all that work to get above 1900 only to see it taken out in less than a week. The increase in volume and volatility in the last few weeks certainly point to more difficulties ahead. RSI is still low and the MACD is still heading down. Is this going to be the big correction many have been waiting for? Let's look to the weekly chart.

The weekly chart does not look so bad, sure there has been a break in the recent trend, sure there has been a string of four negative weeks......oh maybe it does look bad. Hold off on purchases of new investments, the direction is negative, it is that time of year when weakness tends to come into the markets. Strong support will appear at the 1520 - 1570 level, around the peaks of the last two bull markets in 2000 and 2007. For those with a more adventurous appetite, take a short position on the market.