This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Market Charts Are Positive, But Investors Should Beware

NEW YORK (TheStreet) -- I show new monthly, quarterly and semiannual risky levels for all five major equity averages with only one semiannual value level for each. This setup results in huge spreads between annual value levels and monthly, quarterly and semiannual risky levels.

At the beginning of the year, I described the pattern among the value levels, pivots and risky levels as a tangled bowl of spaghetti. Now the pattern is a "Black Hole" that lurks below positive weekly chart profiles and the semiannual value levels at 16301 for the Dow Jones Industrial Average, 1789.3 for the S&P 500 Index, 3972 Nasdaq Composite index, 7423 for Dow Transports and 1139.81 for Russell 2000.

The weekly charts are positive but overbought with the Russell 2000 still showing rising 12x3x3 weekly slow stochastics. The key to continuing to set new multiyear or all-time intraday highs are weekly closes above the five-week modified moving averages at 16720 for the DJIA, 1925.1 for the S&P 500, 4275 for the Nasdaq Composite, 8006 for Dow Transports and 1159.15 for the Russell 2000.

How GM Could Spin Off a $400 Billion Business

The Emperor's New Clothes

Why General Electric's Stock Can Still Shock Investors After Alstom

Weekly closes below these key moving averages indicate risk to the semiannual value levels with that "Black Hole" risk to the annual levels at 14835 and 13467 for the DJIA; 1539.1 and 1442.1 for the S&P 500; 3471 and 3063 for the Nasdaq; 6249 and 5935 for Dow Transports; and 966.72 and 879.39 for the Russell 2000 later in the year.

Let's look at the potential volatility for the major equity averages:

DJIA (16827) has semiannual and annual value levels at 16301, 14835 and 13467, respectively, with monthly, quarterly and semiannual risky levels at 17364, 17753 and 18522, respectively.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
QQQ $109.05 0.00%
SPY $210.72 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs