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Chart Pattern Indicator: What's It Say?…

Blog: January 2022

Bulkowski's Blog: ThePatternSite.com

As of 01/28/2022

  Indus: 34,725 +564.69 +1.7%  

  Trans: 15,049 +238.69 +1.6%  

  Utils: 941 +10.78 +1.2%  

  Nasdaq: 13,771 +417.79 +3.1%  

  S&P 500: 4,432 +105.34 +2.4%  

YTD

-4.4%  

-8.7%  

-4.1%  

-12.0%  

-7.0%  

  Up arrow36,000 or 32,500 by 02/15/2022
  Up arrow16,500 or 14,400 by 02/15/2022
  Up arrow970 or 890 by 02/15/2022
  Up arrow15,000 or 12,700 by 02/15/2022
  Up arrow4,700 or 4,100 by 02/15/2022

As of 01/28/2022

  Indus: 34,725 +564.69 +1.7%  

  Trans: 15,049 +238.69 +1.6%  

  Utils: 941 +10.78 +1.2%  

  Nasdaq: 13,771 +417.79 +3.1%  

  S&P 500: 4,432 +105.34 +2.4%  

YTD

-4.4%  

-8.7%  

-4.1%  

-12.0%  

-7.0%  

  Up arrow36,000 or 32,500 by 02/15/2022
  Up arrow16,500 or 14,400 by 02/15/2022
  Up arrow970 or 890 by 02/15/2022
  Up arrow15,000 or 12,700 by 02/15/2022
  Up arrow4,700 or 4,100 by 02/15/2022

 


Monday 1/31/22. Market Monday: The Week Ahead

My Prediction

Picture of the Nasdaq on the daily scale.

I show the Nasdaq composite on the daily scale.

At AB, there’s a small double bottom which confirms as a valid pattern when the index closes above the top of the pattern. I show that as line C.

In this case, the upward move faltered and the index tumbled. The double bottom failed.

More recently, the index has found a bottom — I think. My expectation and hope is that the index will recover by following the blue line. It won’t be as steep as the line suggests, but
maybe I’ve gotten the direction right (upward).

$ $ $

I finished converting my website to a secure site: https versus http. If you have links to the website with only http:, change it to https: and you’ll get in faster (but I doubt you’ll notice
the difference).

If you find any broken links or pages which don’t load properly, please let me know. Email me at email address.

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A Brief Look Back

Picture of a flower from my garden.

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.

Monday: Up 99.13 points.

Tuesday: Down 66.77 points.

Wednesday: Down 129.64 points.

Thursday: Down 7.31 points.

Friday: Up 564.69 points.

For the Week…

The Dow industrials were up 460.1 points or 1.3%.

The Nasdaq composite was up 1.65 points or 0.0%.

The S&P 500 index was up 33.91 points or 0.8%.

Year to Date…

Dow Industrials

     6.0% down from the high of 36,952.65 on 01/05/2022.

     4.8% up from the low of 33,150.33 on 01/24/2022.

Nasdaq

     13.1% down from the high of 15,852.14 on 01/04/2022.

     5.2% up from the low of 13,094.65 on 01/24/2022.

S&P 500

     8.0% down from the high of 4,818.62 on 01/04/2022.

     5.0% up from the low of 4,222.62 on 01/24/2022.

Options Expiration

No options expire this week.

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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.

Index S2 S1 Pivot R1 R2
Dow Industrials (^DJI): Daily   33,497   34,111   34,422   35,036   35,346 
Weekly   32,565   33,645   34,230   35,311   35,896 
Monthly   31,140   32,933   34,943   36,735   38,745 
S&P500 (^GSPC): Daily   4,245   4,339   4,386   4,479   4,526 
Weekly   4,139   4,285   4,369   4,516   4,600 
Monthly   3,895   4,163   4,491   4,759   5,087 
Nasdaq (^IXIC): Daily   13,058   13,414   13,593   13,949   14,128 
Weekly   12,715   13,243   13,623   14,151   14,531 
Monthly   11,449   12,610   14,256   15,416   17,062 
  • 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:

Pivot point: P = (H + L + C)/3

First resistance level: R1 = (2 * P) – L

First support level: S1 = (2 * P) – H)

Second resistance level: R2 = P + (R1 – S1)

Second support level: S2 = P – (R1 – S1)

H = high price , L=low price, C=closing price

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Earnings, Chart Patterns & Industries

Earnings season is either underway or should be starting soon. The sessions could be more volatile.

Here’s a symbol list of 94 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ACIW, AEL, AXP, AMN, APOG, AAPL, ATR, ARW, AVNT, AVA, BECN, BBBY, BERY, BIO, BOOT, BAH, EPAY, BLDR, BG, CX, CNP, CENX, CTXS, COTY, CCRN, CSGS, DECK, D, DOV, FICO, FAST, FE, FLS, FORM, FCX, GNW, THG, HE, HL, NSP, IVC, KALU, KBH, KSS, LEG, MAN, MRK, MS, MOS, MYGN, NI, OGE, OMI, OXM, PCG, PICO, PNW, RL, SCHW, SRE, NOW, SKX, SCCO, TJX, SLCA, VRSN, VRTX, V, WLK, WEX, XEL, IAI, IHE, FXI, SOXX, SLV, EWK, EWH, EWM, EPP, TUR, DBA, XLP, XLV, XLK, XLU, UNG. Clink 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.

This Week Last Week
1. Petroleum (Producing) 1. Petroleum (Producing)
2. Petroleum (Integrated) 2. Petroleum (Integrated)
3. Natural Gas (Diversified) 3. Semiconductor Cap Equip.
4. Trucking/Transp. Leasing 4. Trucking/Transp. Leasing
5. Oilfield Svcs/Equipment 5. Semiconductor
6. Natural Gas (Distributor) 6. Natural Gas (Diversified)
7. Insurance (Life) 7. Homebuilding
8. Retail Building Supply 8. Oilfield Svcs/Equipment
9. Insurance (Prop/Casualty) 9. Insurance (Life)
10. Electric Utility (East) 10. Retail Building Supply
Best Performing Above Worst Performing Below
50. E-Commerce 50. Medical Supplies
51. Financial Services 51. Medical Services
52. Medical Supplies 52. Shoe
53. Diversified Co. 53. Drug
54. Drug 54. Air Transport
55. Apparel 55. Apparel
56. Short ETFs 56. Biotechnology
57. Biotechnology 57. Financial Services
58. Retail (Special Lines) 58. Healthcare Information
59. Shoe 59. Retail (Special Lines)
60. Healthcare Information 60. Short ETFs


— Thomas Bulkowski

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Friday 1/28/22. Pattern Trading Setups for the Weekend.

Here’s a symbol list of 71 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ADTN, AEL, ABC, ADM, AIZ, ADP, BAX, BECN, BIG, CACI, CAL, CLS, CONN, COST, CTS, DHR, EIX, EZPW, FAST, FORM, FCX, GME, GNW, GILD, HBI, HQY, HTLD, HL, HSII, HSIC, HNI, INCY, NSP, INTC, IPG, IVC, JBLU, KALU, KBH, KSS, LH, LAWS, LDOS, M, MOS, NFLX, OMC, PRFT, PCG, PEG, PHM, RCKY, SLB, SCHW, SAIC, NOW, SCCO, SR, TPX, TER, SLCA, WLK, WSM, WWW, FXI, EWJ, EPP, EWY, GLD, XLU. Clink 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

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 Symbol  Chart Pattern  Bullish 
 Bearish 
Start End Industry
ANF Double Bottom, Adam and Adam        01/10/2022 01/21/2022 Apparel
AMAT Broadening top, right-angled and ascending        11/26/2021 01/14/2022 Semiconductor Cap Equip.
ATO Double Top, Eve and Adam        01/05/2022 01/19/2022 Natural Gas (Diversified)
BLL Pipe top        12/27/2021 01/03/2022 Packaging and Container
BBW Double Top, Eve and Eve        12/01/2021 01/11/2022 Retail (Special Lines)
CACI Double Top, Adam and Eve        01/05/2022 01/18/2022 IT Services
CE Double Top, Adam and Adam        01/05/2022 01/13/2022 Chemical (Basic)
CLS Pipe top        01/03/2022 01/10/2022 Electronics
CX Double Top, Eve and Eve        01/05/2022 01/14/2022 Cement and Aggregates
CNP Broadening top, right-angled and descending        01/05/2022 01/27/2022 Electric Utility (Central)
CL Double Top, Eve and Eve        01/05/2022 01/19/2022 Household Products
CR Double Top, Eve and Eve        01/05/2022 01/13/2022 Diversified Co.
CCRN Triple top        11/04/2021 12/28/2021 Human Resources
CTS Double Top, Eve and Eve        11/16/2021 01/04/2022 Electronics
WIRE Double Top, Eve and Eve        11/23/2021 12/28/2021 Metals and Mining (Div.)
EPAM Three Falling Peaks        11/05/2021 12/27/2021 IT Services
FICO Broadening top        12/30/2021 01/26/2022 IT Services
FCX Pipe top        01/10/2022 01/18/2022 Metals and Mining (Div.)
HBI Head-and-shoulders bottom        12/13/2021 12/31/2021 Apparel
HSC Double Top, Eve and Eve        12/29/2021 01/14/2022 Diversified Co.
KLIC Pipe top        12/06/2021 12/13/2021 Semiconductor Cap Equip.
LRCX Triple top        12/09/2021 01/13/2022 Semiconductor Cap Equip.
LAMR Double Top, Eve and Eve        11/05/2021 01/04/2022 Advertising
RAMP Double Top, Adam and Adam        12/08/2021 01/04/2022 Computer Software and Svcs
MNDT Head-and-shoulders bottom        11/23/2021 12/15/2021 Computer Software and Svcs
MAS Broadening top        11/16/2021 01/04/2022 Building Materials
NFLX Dead-cat bounce        01/21/2022 01/21/2022 Internet
PKG Ugly double bottom        12/20/2021 01/24/2022 Packaging and Container
PKE Rectangle bottom        11/26/2021 01/27/2022 Chemical (Specialty)
PATK Three Falling Peaks        10/04/2021 01/05/2022 Retail Building Supply
PHM Double Top, Eve and Adam        12/30/2021 01/13/2022 Homebuilding
RL Three Falling Peaks        11/01/2021 01/05/2022 Apparel
RHI Broadening top        12/29/2021 01/14/2022 Human Resources
SAIC Ugly double bottom        12/20/2021 01/10/2022 IT Services
SWN Horn top        12/27/2021 01/10/2022 Natural Gas (Diversified)
TECH Three Falling Peaks        09/23/2021 12/31/2021 Biotechnology
TFX Triple top        01/05/2022 01/20/2022 Diversified Co.
TER Dead-cat bounce        01/27/2022 01/27/2022 Semiconductor Cap Equip.
VMC Double Top, Adam and Eve        11/09/2021 01/04/2022 Cement and Aggregates
WERN Pipe top        12/27/2021 01/03/2022 Trucking/Transp. Leasing
WLK Pipe top        01/10/2022 01/18/2022 Chemical (Basic)

 

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Thursday 1/27/22. Intraday Market Direction: Nasdaq

The index climbed by 0.0% or 2.83 points. Since 02/05/1971 the index made 693 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.8% on 395 occasions.

     Average loss was -0.9% on 298 occasions.

Expect the index to close higher 57.0% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 234/409 or 57.2% of the time.

     The prediction of the index closing lower has been right 60/127 or 47.2% of the time.

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

Picture of the Nasdaq composite on the 5 minute scale.

$ $ $

I show a picture of the Nasdaq composite on the 5-minute scale.

I like trendlines because they describe how price has moved and give hints of what will happen.

This chart is an example of that idea. The blue line shows the longer-term trend (although on this scale, it’s very short term). The index tried to pierce it at point A, but failed to do so.

The red line shows a recovery. Everything was fine until the FED made their announcement. My view is that the market would shrug off their words and climb. Instead, the index dropped.
I still believe their worry is overblown, so I’m still thinking that this is a buying opportunity (I bought 2 securities and may buy another tomorrow). I expect a recovery.
The above probabilities (57% close higher) support that belief.

$ $ $

Here’s a symbol list of 160 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
MMM, ABT, ACN, ACIW, AYI, APD, DOX, AEE, AEL, AFG, APOG, AWI, ARW, ASH, ADP, AVNT, BZH, BERY, BIG, BIO, BIIB, BMRN, BA, CBT, CAL, CPB, CNC, CENX, CHS, CSCO, CLF, CTSH, CL, CMCO, CONN, GLW, CSGS, DECK, ^DJU, ^DJI, BOOM, EZPW, FFIV, FAST, FIS, FCX, GE, GPRO, GES, HBI, HE, HTLD, HL, HSII, HNI, HD, HON, DHI, NSP, ITGR, IPAR, TILE, IVC, JNJ, KALU, KBH, KBAL, KSS, LHX, LZB, LAMR, LEG, MHO, M, MAN, MCHX, MAS, FB, MGEE, MOS, NTAP, NEU, NKE, OMC, OUT, OXM, PAYX, PRFT, PFE, PCG, PNW, POR, PPL, PHM, KWR, RL, RCKY, ROST, SMG, SCCO, SCS, SRDX, TPR, TDOC, TPX, TKR, TOL, SLCA, UPS, VLO, WLK, WMB, WSM, WWW, ITA, IYM, FXI, BOTZ, ICF, IYH, IYZ, ECH, EEM, EWJ, EPP, EWS, EZA, EWY, EWT, THD, TUR, PPA, PBE, XLY, XLP, XLI, XLB, XRT, XAR, UNG, USO, VHT, VIS, VAW. Clink 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   12,265.38      
 Monthly S1   12,903.75   638.37   
 Daily S2   13,035.19   131.44   
 Weekly S2   13,039.33   4.14   Yes! The Weekly S2 is close to the Daily S2.
 Daily S1   13,288.66   249.32   
 Weekly S1   13,290.73   2.07   Yes! The Weekly S1 is close to the Daily S1.
 Low   13,392.19   101.46   
 Close   13,542.12   149.93   
 61.8% Down from Intraday High   13,625.39   83.27   
 Daily Pivot   13,645.65   20.27   Yes! The Daily Pivot is close to the 61.8% Down from Intraday High.
 50% Down from Intraday High   13,697.42   51.77   Yes! The 50% Down from Intraday High is close to the Daily Pivot.
 38.2% Down from Intraday High   13,769.45   72.03   
 Open   13,871.77   102.32   
 Daily R1   13,899.12   27.35   Yes! The Daily R1 is close to the Open.
 High   14,002.65   103.53   
 Weekly Pivot   14,015.63   12.98   Yes! The Weekly Pivot is close to the High.
 Daily R2   14,256.11   240.48   
 Weekly R1   14,267.03   10.91   Yes! The Weekly R1 is close to the Daily R2.
 Monthly Pivot   14,402.61   135.58   
 Weekly R2   14,991.93   589.32   
 Monthly R1   15,040.98   49.05   Yes! The Monthly R1 is close to the Weekly R2.
 Monthly R2   16,539.84   1,498.86   


Wednesday 1/26/22. A Look At Indicators

Picture of the chart pattern indicator

This is a picture of the chart pattern indicator on the daily scale. The indicator is the line chart below a chart of the S&P 500 composite.

In my view, this drop is well oversold (meaning it’s time or nearly time to buy). Maybe after tomorrow’s (Wednesday’s) FED meeting the markets will settle down. So if I had cash
to put into the market, I’d be buying. To put it another way, I think the markets will rebound and two years from now, you’ll wish you’d bought. That’s called buy-the-dip.

This chart is bearish. The index has made a swift drop and the CPI signaled a bearish turn soon after it happened (the red vertical bar on the far right of the chart).
Good timing on that signal. However, both the CPI and index are still bearish.
I will say that the indices seem to be turning or trying to turn. It’s fighting to find a bottom. If I had to guess, I think we put in the low yesterday (Monday). I DO expect the markets
to make a big rally tomorrow after the FED meeting. That’s a guess, of course.

Picture of the percent down indicators

The red line is the percentage of stocks at least 20% below their 1-year high (plotted upside down). The blue line is the average percentage drop of stocks below their 1-year high (plotted upside down).

Shown as a red line on the above chart…

On Tuesday, 44% of stocks in my database are in bear market territory (down at least 20% from their 1-year high).

A week ago, it was 36%.

The fewest was 8% on 03/15/2021.

And the most was 44% on 01/25/2022.

Shown as a blue line on the above chart…

The 459 stocks in my database are down an average of 20% from their yearly high.

A week ago, the average was 17%.

The peak was 8% on 03/15/2021.

And the bottom was 20% on 01/21/2022.

Both the blue and red lines are bearish this week compared to a week ago. No surprise there. I’m still struck by how the red line has been trending lower for months (most of the chart, really)
even as the index has climbed.

That’s profound bearish divergence.

This week, we have two bearish charts and yet I expect a big rally. You don’t see hints of a bullish turn on the charts and world events (covid, inflation, Russia/Ukraine) will continue to
make the markets volatile. In my view, when things look bleak and you feel like selling everything, that’s the time to buy. I may follow my own advice and buy some QQQs other ETF.
I won’t be buying individual stocks because of the risk of them making a huge decline (often due to earnings). But the QQQs have made a nice drop, so it’s like buying it on sale and the
diversified nature of the ETF means you don’t suffer as much from single-stock risk.

$ $ $

Here’s a symbol list of 89 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
AXDX, ADTN, AJRD, AEL, APA, APOG, ARW, BBBY, BOOT, BAH, CENX, CHKP, CHD, CL, CMTL, CONN, COP, CSGS, CTS, XRAY, DVN, BOOM, FAST, FCX, GPS, GL, HP, HON, NSP, IPAR, IBKR, KALU, KBH, KSS, LZB, LAWS, LEG, LMT, LXU, MAN, MRO, MOS, MUR, NBR, NOV, OXY, ORI, OMC, PKE, PDCO, PTEN, PETS, PCG, RGS, REV, RLI, RES, SLB, SMG, SEE, SCCO, SCS, SRDX, RIG, SLCA, VLO, WLK, IEO, IEZ, IHE, IGE, EWM, EZA, PXJ, IXC, XLP. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

— Thomas Bulkowski

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Tuesday 1/25/22. Slider Trading Quiz!

The index climbed by 0.3% or 99.13 points. Since 10/01/1928 the index made 1125 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.7% on 620 occasions.

     Average loss was -0.6% on 505 occasions.

Expect the index to close higher 55.1% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 237/423 or 56.0% of the time.

     The prediction of the index closing lower has been right 44/93 or 47.3% of the time.

$ $ $

I show another slider trading quiz featuring Guess: GES.

$ $ $

Here’s a symbol list of 170 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ABT, ANF, ACIW, AMD, ALK, ALB, ALKS, AEE, AXP, AWI, ARW, ATO, BECN, BERY, BIG, BKH, BAH, BRC, BMY, BBW, CBT, CAL, CX, CNC, CENX, CRL, CHKP, CHD, CSCO, CTXS, CLF, CLX, CTSH, ED, CONN, CR, CRH, CTS, CW, DHR, DECK, XRAY, DDS, DUK, EQT, EXC, FICO, FAST, FOE, FMC, FORM, FCX, GNW, GS, GPRO, THG, HLIT, HE, HTLD, HL, HNI, HON, JBHT, IDA, IEX, ILMN, INCY, NSP, IIIN, IBKR, JKHY, JBLU, JNJ, KFRC, KMB, KSS, LZB, LNC, LMT, LXU, M, MCHX, MAS, MTRX, MRK, MGEE, MYGN, CNR, NCR, NEE, JWN, NOC, ORI, OMC, OTEX, PKG, PKE, PDCO, PAYX, PYPL, PFE, PCG, PICO, PEG, PHM, RLI, RCKY, RES, SEE, SLGN, SO, SCCO, SWN, SRDX, TEVA, TMO, TJX, TRV, UGI, VEEV, VRTX, WRB, XEL, ZBRA, IEZ, IHE, IDU, BOTZ, IYH, EWA, EWO, EWK, EWC, EWQ, EWG, EIS, EWI, EWJ, EWM, EWW, EPP, EWY, EWP, EWD, EWL, TUR, EWU, IEV, MXI, XLP. Clink 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 Dow industrials, sorted by value. When several are near each other (small differences),
the area might act as support or resistance.

— Thomas Bulkowski

Top

© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   32,459.13      
 Daily S2   32,707.95   248.81   
 Low   33,150.33   442.38   
 Weekly S2   33,319.73   169.40   
 Monthly S1   33,411.82   92.09   Yes! The Monthly S1 is close to the Weekly S2.
 Daily S1   33,536.22   124.41   Yes! The Daily S1 is close to the Monthly S1.
 61.8% Down from Intraday High   33,635.72   99.50   Yes! The 61.8% Down from Intraday High is close to the Daily S1.
 50% Down from Intraday High   33,785.66   149.94   
 Weekly S1   33,842.11   56.45   Yes! The Weekly S1 is close to the 50% Down from Intraday High.
 38.2% Down from Intraday High   33,935.60   93.48   Yes! The 38.2% Down from Intraday High is close to the Weekly S1.
 Daily Pivot   33,978.61   43.01   Yes! The Daily Pivot is close to the 38.2% Down from Intraday High.
 Open   34,070.61   92.00   Yes! The Open is close to the Daily Pivot.
 Close   34,364.50   293.89   
 High   34,420.99   56.49   Yes! The High is close to the Close.
 Weekly Pivot   34,751.94   330.95   
 Daily R1   34,806.88   54.95   Yes! The Daily R1 is close to the Weekly Pivot.
 Monthly Pivot   35,182.23   375.35   
 Daily R2   35,249.27   67.03   Yes! The Daily R2 is close to the Monthly Pivot.
 Weekly R1   35,274.32   25.06   Yes! The Weekly R1 is close to the Daily R2.
 Monthly R1   36,134.92   860.59   
 Weekly R2   36,184.15   49.23   Yes! The Weekly R2 is close to the Monthly R1.
 Monthly R2   37,905.33   1,721.18   


Monday 1/24/22. Market Monday: The Week Ahead

My Prediction

Picture of the Dow industrials on the daily scale.

There’s not a lot to say about the chart you see here. It’s a picture of the Dow industrials on the daily scale.

I drew two trendlines, the first one on the bottom. It ends at A, today’s (Friday’s) low price. It suggests the index will turn upward here because of trendline support.

However, we have to factor in world events. Russia is poised to invade Ukraine and I expect that will happen. If it does, the indices will suffer, at least for a short time (days, not weeks).

We are still struggling with Covid and inflation, rising interest rates and other things which don’t come to mind as I write this.

The top trendline isn’t important because, at least for what’s shown, it only connects 2 peaks.

So let’s wait and see if the index turns upward.

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A Brief Look Back

Picture of a flower from my garden.

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.

Tuesday: Down 543.34 points.

Wednesday: Down 339.82 points.

Thursday: Down 313.26 points.

Friday: Down 450.02 points.

Saturday: Holiday or other weird event!

For the Week…

The Dow industrials were down 1646.44 points or 4.6%.

The Nasdaq composite was down 1124.83 points or 7.6%.

The S&P 500 index was down 264.91 points or 5.7%.

Year to Date…

Dow Industrials

     7.3% down from the high of 36,952.65 on 01/05/2022.

     0.1% up from the low of 34,229.55 on 01/21/2022.

Nasdaq

     13.1% down from the high of 15,852.14 on 01/04/2022.

     0.0% up from the low of 13,764.24 on 01/21/2022.

S&P 500

     8.7% down from the high of 4,818.62 on 01/04/2022.

     0.1% up from the low of 4,395.34 on 01/21/2022.

Options Expiration

No options expire this week.

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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.

Index S2 S1 Pivot R1 R2
Dow Industrials (^DJI): Daily   33,797   34,031   34,464   34,698   35,131 
Weekly   33,287   33,776   34,719   35,208   36,151 
Monthly   32,426   33,346   35,149   36,069   37,872 
S&P500 (^GSPC): Daily   4,330   4,364   4,429   4,463   4,528 
Weekly   4,238   4,318   4,475   4,555   4,712 
Monthly   4,114   4,256   4,537   4,679   4,961 
Nasdaq (^IXIC): Daily   13,494   13,632   13,902   14,039   14,309 
Weekly   13,115   13,442   14,091   14,418   15,068 
Monthly   12,341   13,055   14,478   15,192   16,615 
  • 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:

Pivot point: P = (H + L + C)/3

First resistance level: R1 = (2 * P) – L

First support level: S1 = (2 * P) – H)

Second resistance level: R2 = P + (R1 – S1)

Second support level: S2 = P – (R1 – S1)

H = high price , L=low price, C=closing price

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Earnings, Chart Patterns & Industries

Earnings season is either underway or should be starting soon. The sessions could be more volatile.

Here’s a symbol list of 142 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ADTN, APD, AMZN, AMED, AEE, AXP, ABC, ANTM, APA, APOG, AWI, ADSK, AVA, BBBY, BERY, BBY, BIG, BKNG, BMY, BBW, CBT, CAL, CLS, CNC, CNP, CENX, CHKP, CSCO, CLNE, CLF, CTSH, CR, CRH, CTS, CW, DECK, DVN, EXP, EQT, EXC, FICO, FDX, FOE, FORM, FTNT, FCX, GPN, GL, GS, HLIT, HL, HSIC, HNI, HURC, INFN, IIIN, IBKR, IPG, ISRG, JBLU, KFRC, KSS, LDOS, LMT, LXU, M, MRO, MCHX, MAS, MRK, MOS, MUR, MYGN, NFLX, NJR, NEE, JWN, NWPX, OMC, PAYX, PYPL, PRFT, PFE, PFG, PRU, RJF, RLI, RES, SLB, SEIC, SWN, SUM, TJX, TZOO, SLCA, UNM, WRB, WMT, WLK, IYM, IAI, IYC, IEO, FDN, BOTZ, ICF, IAT, EWA, EWO, EWK, EWC, ECH, EWQ, EWG, EIS, EWI, EWP, EWD, EWT, PPA, ROBO, IEV, MXI, XLI, XLB, VAW. Clink 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.

This Week Last Week
1. Petroleum (Producing) 1. Petroleum (Producing)
2. Petroleum (Integrated) 2. Petroleum (Integrated)
3. Semiconductor Cap Equip. 3. Semiconductor Cap Equip.
4. Trucking/Transp. Leasing 4. Trucking/Transp. Leasing
5. Semiconductor 5. Semiconductor
6. Natural Gas (Diversified) 6. Natural Gas (Diversified)
7. Homebuilding 7. Homebuilding
8. Oilfield Svcs/Equipment 8. Oilfield Svcs/Equipment
9. Insurance (Life) 9. Insurance (Life)
10. Retail Building Supply 10. Retail Building Supply
Best Performing Above Worst Performing Below
50. Medical Supplies 50. Medical Supplies
51. Medical Services 51. Medical Services
52. Shoe 52. Shoe
53. Drug 53. Drug
54. Air Transport 54. Air Transport
55. Apparel 55. Apparel
56. Biotechnology 56. Biotechnology
57. Financial Services 57. Financial Services
58. Healthcare Information 58. Healthcare Information
59. Retail (Special Lines) 59. Retail (Special Lines)
60. Short ETFs 60. Short ETFs

— Thomas Bulkowski

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Friday 1/21/22. Pattern Trading Setups for the Weekend.

$ $ $

Here’s a symbol list of 135 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
AXDX, ADBE, AA, ALKS, AXP, AFG, APH, ANTM, APOG, ADSK, BCPC, BECN, BERY, BBY, BIG, BKH, BA, BOOT, BRC, BBW, CAL, CLS, CHKP, CLF, CONN, GLW, COST, CRH, CTS, CMI, DECK, D, DTE, EBAY, EQT, RE, FICO, FAST, FIVN, FLS, GS, EVRG, HTLD, HL, HELE, HNI, DHI, NSP, IBP, IIIN, INTC, IPG, JKHY, KELYA, KFRC, KSS, LZB, LDOS, LEN, LMT, LXU, M, MCHX, MAS, MDC, FB, MGEE, MS, MYGN, NFG, NFLX, NTGR, NEU, NEE, JWN, NWPX, OMC, PDCO, PETS, PFE, PFG, RGS, RLI, RES, SLGN, SO, SWN, SCS, SUM, TGT, TKR, TJX, TOL, TZOO, UGI, VFC, WMB, WWW, IYM, ITB, IHE, IDU, FXI, ICF, SLV, EWA, EWZ, ECH, EWQ, EWH, EWI, EZA, EWL, PEJ, PJP, IXN, XLF, XLV, XLI. Clink 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

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 Symbol  Chart Pattern  Bullish 
 Bearish 
Start End Industry
MMM Double Top, Eve and Eve        01/05/2022 01/13/2022 Diversified Co.
ACN Double Top, Adam and Eve        12/16/2021 12/29/2021 IT Services
APD Double Top, Adam and Adam        12/15/2021 01/05/2022 Chemical (Diversified)
ALB Pipe top        01/03/2022 01/10/2022 Chemical (Diversified)
AXP Pipe top        01/03/2022 01/10/2022 Financial Services
AAPL Double Top, Eve and Eve        12/13/2021 01/04/2022 Computers and Peripherals
AWI Double Top, Adam and Eve        12/08/2021 01/04/2022 Building Materials
BCPC Triple top        11/23/2021 12/30/2021 Chemical (Specialty)
BKNG Double Bottom, Eve and Adam        12/01/2021 12/15/2021 Internet
BRC Head-and-shoulders top        12/07/2021 01/14/2022 Chemical (Diversified)
CENX Broadening top, right-angled and ascending        12/23/2021 01/20/2022 Metals and Mining (Div.)
CTXS Diamond top        12/28/2021 01/14/2022 Computer Software and Svcs
CLF Pipe top        01/03/2022 01/10/2022 Metals and Mining (Div.)
CRH Double Top, Adam and Adam        01/04/2022 01/13/2022 Cement and Aggregates
DTE Triangle, ascending        12/16/2021 01/13/2022 Electric Utility (Central)
DUK Triple top        12/17/2021 01/10/2022 Electric Utility (East)
EMR Double Top, Adam and Eve        01/05/2022 01/13/2022 Computers and Peripherals
EFX Double Top, Eve and Eve        12/13/2021 12/29/2021 Information Services
GPS Double Top, Eve and Adam        01/05/2022 01/13/2022 Apparel
GS Pipe top        01/03/2022 01/10/2022 Securities Brokerage
GOOGL Three Falling Peaks        11/19/2021 12/28/2021 Internet
GGG Double Top, Adam and Eve        12/13/2021 12/30/2021 Machinery
GFF Double Top, Adam and Eve        11/15/2021 12/29/2021 Building Materials
GES Double Top, Eve and Adam        12/08/2021 01/03/2022 Apparel
HLIT Double Top, Adam and Adam        12/27/2021 01/04/2022 Telecom. Equipment
HL Pipe bottom        01/03/2022 01/10/2022 Metals and Mining (Div.)
HSII Head-and-shoulders top        12/27/2021 01/13/2022 Human Resources
HELE Triple top        12/16/2021 01/06/2022 Toiletries/Cosmetics
HD Double Top, Eve and Eve        12/06/2021 01/03/2022 Retail Building Supply
HOV Double Top, Adam and Eve        12/13/2021 12/28/2021 Homebuilding
HUBG Pipe top        12/27/2021 01/03/2022 Trucking/Transp. Leasing
IEX Triple top        11/16/2021 01/05/2022 Machinery
IDXX Triple top        10/29/2021 12/30/2021 Drug
INTC Double Top, Adam and Eve        01/05/2022 01/12/2022 Semiconductor
IPG Double Top, Adam and Adam        01/05/2022 01/13/2022 Advertising
INTU Three Falling Peaks        11/19/2021 12/28/2021 Computer Software and Svcs
ISRG Double Top, Eve and Eve        11/05/2021 12/29/2021 Medical Supplies
JNJ Double Top, Adam and Eve        12/16/2021 01/07/2022 Medical Supplies
KELYA Double Top, Adam and Adam        01/05/2022 01/13/2022 Human Resources
KBAL Double Top, Eve and Adam        01/05/2022 01/13/2022 Furn/Home Furnishings
KSS Big W        12/20/2021 01/10/2022 Retail Store
LAWS Pipe top        12/27/2021 01/03/2022 Metal Fabricating
LOW Double Top, Adam and Eve        12/13/2021 01/04/2022 Retail Building Supply
MTSI Triple top        11/22/2021 12/28/2021 Semiconductor
MLM Double Top, Eve and Eve        12/16/2021 01/04/2022 Cement and Aggregates
MTRX Double Top, Eve and Eve        01/06/2022 01/13/2022 Oilfield Svcs/Equipment
MDC Triple top        12/13/2021 01/13/2022 Homebuilding
MU Double Top, Eve and Adam        01/05/2022 01/13/2022 Semiconductor
MS Pipe top        01/03/2022 01/10/2022 Securities Brokerage
JWN Double Top, Eve and Adam        01/04/2022 01/13/2022 Retail Store
OLN Rectangle bottom        12/02/2021 01/19/2022 Chemical (Basic)
ASGN Triple top        11/23/2021 01/04/2022 Human Resources
OUT Pipe top        12/27/2021 01/03/2022 Advertising
PPG Head-and-shoulders top        12/16/2021 01/13/2022 Chemical (Diversified)
QCOM Triple top        12/16/2021 01/13/2022 Telecom. Equipment
RJF Broadening top        11/03/2021 12/29/2021 Securities Brokerage
RLI Double Top, Adam and Eve        12/16/2021 01/04/2022 Insurance (Prop/Casualty)
SIGI Three Falling Peaks        12/16/2021 01/13/2022 Insurance (Prop/Casualty)
SWN Double Top, Adam and Adam        12/30/2021 01/12/2022 Natural Gas (Diversified)
SUM Triple top        11/16/2021 01/05/2022 Cement and Aggregates
TJX Double Top, Adam and Eve        11/17/2021 01/04/2022 Retail Store
TOL Three Falling Peaks        12/13/2021 01/13/2022 Homebuilding
TSCO Double Top, Eve and Eve        12/16/2021 01/03/2022 Retail Building Supply
TREX Double Top, Eve and Eve        12/08/2021 12/28/2021 Building Materials
VFC Three Falling Peaks        11/16/2021 01/05/2022 Apparel
VMI Pipe top        12/13/2021 12/13/2021 Metal Fabricating
VC Double Top, Adam and Adam        01/05/2022 01/13/2022 Electronics
WSO Double Top, Eve and Eve        12/16/2021 01/03/2022 Retail Building Supply
WDAY Three Falling Peaks        11/17/2021 12/27/2021 Computer Software and Svcs
QTEC Double Top, Eve and Eve        11/19/2021 12/28/2021 Electronics

 

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Thursday 1/20/22. Cryptocurrency DOGE-USD

The index dropped by -1.1% or -166.64 points. Since 02/05/1971 the Nasdaq index made 170 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 1.4% on 87 occasions.

     Average loss was -1.2% on 83 occasions.

Expect the index to close higher 51.2% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 234/408 or 57.4% of the time.

     The prediction of the index closing lower has been right 60/127 or 47.2% of the time.

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

Picture of DOGE.

$ $ $

I show a picture of the cryptocurrency DOGE-USD on the daily scale.

The chart shows a double top at AB, confirmed when DOGE closed below the valley between the two peaks. I show that as the horizontal red line, and it happens at C.

You’ll notice the two shorter peaks to the left and right of the letter D. That potential double top didn’t confirm, and the currency continued higher. That’s how unconfirmed patterns work.

After viewing cryptocurrencies for several months now, it appears that chart patterns work well with them. What we see coming now is a potential double bottom (the two lowest valleys
on the chart). It hasn’t confirmed yet, but it suggests an upward move is coming. We have to wait for confirmation to be sure.

$ $ $

Here’s a symbol list of 131 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ALKS, ADS, AMZN, AXP, AIG, AMN, ANTM, AON, ACGL, AGO, ATO, ADP, AXS, BMI, BBBY, BIG, BMRN, BA, BBW, BG, CDNS, CALM, CLS, CNC, CHKP, CHS, CTXS, CLNE, CLF, CNA, CNO, CMI, DECK, RE, EVH, EXPD, EZPW, FDX, FLS, FWRD, FRD, GS, HAYN, HL, HD, DHI, IEX, TILE, ISRG, JKHY, JAZZ, JBLU, KBAL, LEN, LMT, LXU, MTSI, MNDT, MCHX, MDC, MS, MYGN, CNR, NJR, JWN, OMC, OTEX, PDCO, PAYX, PYPL, PRFT, PLXS, PPG, PHM, RMBS, RGA, REV, RES, SWN, SCS, SUM, SNPS, TKR, TOL, TRV, TZOO, UGI, UNM, VRSN, VC, VMC, WMB, XEL, ZBRA, IAI, ITB, IEZ, IHE, BOTZ, IAT, IYZ, SLV, EWO, EWK, EWZ, EIS, EWI, EWJ, EWM, EWY, EWP, TUR, DBA, ROBO, ILF, GLD. Clink 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   13,552.75      
 Weekly S2   13,941.04   388.29   
 Monthly S1   13,946.50   5.46   Yes! The Monthly S1 is close to the Weekly S2.
 Daily S2   14,116.36   169.86   
 Weekly S1   14,140.65   24.29   Yes! The Weekly S1 is close to the Daily S2.
 Daily S1   14,228.31   87.66   
 Low   14,331.65   103.34   
 Close   14,340.26   8.61   Yes! The Close is close to the Low.
 Daily Pivot   14,443.60   103.34   
 61.8% Down from Intraday High   14,456.66   13.06   Yes! The 61.8% Down from Intraday High is close to the Daily Pivot.
 50% Down from Intraday High   14,495.27   38.61   
 38.2% Down from Intraday High   14,533.88   38.62   
 Daily R1   14,555.55   21.67   Yes! The Daily R1 is close to the 38.2% Down from Intraday High.
 Open   14,582.22   26.67   Yes! The Open is close to the Daily R1.
 High   14,658.89   76.67   
 Weekly Pivot   14,729.84   70.95   
 Daily R2   14,770.84   41.00   
 Monthly Pivot   14,923.99   153.15   
 Weekly R1   14,929.45   5.46   Yes! The Weekly R1 is close to the Monthly Pivot.
 Monthly R1   15,317.74   388.29   
 Weekly R2   15,518.64   200.90   
 Monthly R2   16,295.23   776.59   


Wednesday 1/19/22. A Look At Indicators

Picture of plumbing problem

Here’s a plumbing problem I faced today (Tuesday).

I show the equipment involved for a pressure test of the sewer line in the pic (this was taken years ago).
You drop the balloon (the black ball at the end of the yellow pipe) down the clean out, inflate it, fill the pipe toward the house with water and see if the water doesn’t drain away (it should hold steady).

After I finished the test, when I tried to remove the balloon from the clean out, I twisted the yellow pipe the wrong way. It unscrewed the balloon and it’s now in the clean out (or so I thought).

Because the clean out had a break before, there’s a gasket on the left end. So I cut the clean out pipe and removed the section from the gasket to the clean out, hoping to retrieve my balloon.

Know what I found? Nothing. The balloon appears to have moved toward the street. The balloon is a bit smaller than 3″ around and the pipe it’s now in is 4″. So it
can float toward the street. (I ran two snakes down the clean outs and didn’t hit the balloon, so it must have floated toward the street).

Update: This morning I was in Home Depot shopping for a transition gasket and a plumber (not a Home Depot employee) asked if I needed help. I told him my situation and he said that
the balloon will just float away.

So this morning (Wednesday), before it gets cold, I’ll run a snake down the 4″ line toward the street (to push the balloon down the pipe) and then bottle up the mess I created. And hope it doesn’t plug.

$ $ $

Picture of the chart pattern indicator

This is a picture of the chart pattern indicator on the daily scale. The indicator is the line chart below a chart of the S&P 500 composite.

The CPI is still bearish as the chart shows with the red vertical line on the far right of the chart. The indicator line is approaching zero, too. That’s bearish.

The 2022 forecast (slide 5) suggested that the first few weeks of the year would be weak, but the dip should not have taken us down so far.

The impending rise in interest rates, Omicron and Covid, and inflation all played their part to drive the markets down. However, I’m still optimistic that we’ll see the index rise.

Picture of the percent down indicators

The red line is the percentage of stocks at least 20% below their 1-year high (plotted upside down). The blue line is the average percentage drop of stocks below their 1-year high (plotted upside down).

Shown as a red line on the above chart…

On Tuesday, 36% of stocks in my database are in bear market territory (down at least 20% from their 1-year high).

A week ago, it was 32%.

The fewest was 8% on 03/15/2021.

And the most was 39% on 12/01/2021.

Shown as a blue line on the above chart…

The 459 stocks in my database are down an average of 17% from their yearly high.

A week ago, the average was 16%.

The peak was 8% on 03/15/2021.

And the bottom was 19% on 12/01/2021.

The red line, my favorite, took a steep dive today (Tuesday). Both lines are more bearish today than they were a week ago.

Much to my surprise, the downtrend that began in May seems to have continued. It’s hard to see but the red line hasn’t dropped below the prior valley (in mid December). So there’s hope
that this drop will form a three rising valleys type pattern and lead to another rise. That’s promising.

Even after such a large drop, I’m still bullish. I’m still looking for the indices to recover.

$ $ $

Here’s a symbol list of 124 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ACN, APD, AMZN, AFG, AIG, APH, AON, ACGL, AWI, AVA, BMI, BSET, BBY, BMRN, BOOT, CDNS, CHKP, CSCO, CTXS, CLNE, CLX, CNA, CAG, GLW, COST, CCRN, EXP, EMN, EFX, EQT, EL, EXC, FAST, IT, GS, GGG, GFF, HSC, HAYN, HTLD, HD, NSP, IIIN, ISRG, JKHY, JAZZ, KBAL, KSS, LAWS, LEG, LOW, MTSI, M, MNDT, MLM, MCO, MS, MYGN, CNR, NEU, NEE, NKE, JWN, NWPX, OMC, PDCO, PAYX, PYPL, PPG, KWR, RGS, RGA, REV, ROK, ROST, RES, SIGI, SWN, SNPS, TPX, TJX, TZOO, TG, TREX, SLCA, VRSN, WAT, WMB, IAI, IYC, IHE, IDU, DDM, BOTZ, ICF, IAT, IYZ, SLV, EWA, EWO, EEM, EWJ, EWM, EWY, EWD, THD, DBA, PXJ, PHO, ROBO, MXI, GLD, XHB, XLU, USO. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

— Thomas Bulkowski

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Tuesday 1/18/22. Slider Trading Quiz!

The index dropped by -0.6% or -201.81 points. Since 10/01/1928 the index made 682 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.6% on 352 occasions.

     Average loss was -0.7% on 330 occasions.

Expect the index to close higher 51.6% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 237/422 or 56.2% of the time.

     The prediction of the index closing lower has been right 44/93 or 47.3% of the time.

$ $ $

I show another slider trading quiz featuring Goodrich: GR.

$ $ $

Here’s a symbol list of 143 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ACN, AEIS, AFL, APD, AKAM, AEL, ABC, AMGN, AON, AMAT, ARCB, AWI, AGO, AVA, BLL, BOOT, CX, CHKP, CVX, CMCO, COST, CROX, CCRN, DECK, BOOM, EIX, EFX, EL, EXC, FDS, FAST, FORM, IT, GD, GL, GPRO, GGG, GFF, HLIT, HTLD, HD, HUBG, IDA, IEX, NSP, IPAR, IBKR, ISRG, JKHY, KLIC, LRCX, LAWS, LNC, LOW, LXU, MLM, MU, MLKN, MCO, NBR, NEU, NKE, JWN, OXY, OGE, OMC, OUT, OXM, PDCO, PTEN, PYPL, PCG, PINC, KWR, RGS, REV, ROK, ROST, SCHW, SAIC, SEE, SHW, SWN, SCS, TPX, TEVA, TJX, RIG, TREX, SLCA, UGI, UPS, VLO, VRSN, VMC, WERN, WLK, WEX, WSM, IYM, IYC, IHI, IEO, IEZ, IHE, QTEC, FXL, BOTZ, ICF, EWH, EWJ, EWM, EPP, EWD, EWL, DBA, PXJ, PHO, IEV, MXI, GLD, XLK, XLU. Clink 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 Dow industrials, 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   33,556.17      
 Monthly S1   34,733.99   1,177.82   
 Weekly S2   35,147.96   413.98   
 Daily S2   35,494.97   347.00   
 Weekly S1   35,529.89   34.92   Yes! The Weekly S1 is close to the Daily S2.
 Low   35,641.49   111.60   
 Daily S1   35,703.39   61.90   
 61.8% Down from Intraday High   35,777.08   73.69   
 50% Down from Intraday High   35,818.96   41.88   
 Monthly Pivot   35,843.32   24.36   Yes! The Monthly Pivot is close to the 50% Down from Intraday High.
 Daily Pivot   35,849.91   6.59   Yes! The Daily Pivot is close to the Monthly Pivot.
 38.2% Down from Intraday High   35,860.84   10.93   Yes! The 38.2% Down from Intraday High is close to the Daily Pivot.
 Close   35,911.81   50.96   
 High   35,996.43   84.62   
 Open   35,996.43   0.00   Yes! The Open is close to the High.
 Weekly Pivot   36,021.88   25.45   Yes! The Weekly Pivot is close to the Open.
 Daily R1   36,058.33   36.45   
 Daily R2   36,204.85   146.52   
 Weekly R1   36,403.80   198.95   
 Weekly R2   36,895.80   492.00   
 Monthly R1   37,021.14   125.34   
 Monthly R2   38,130.47   1,109.33   


Monday 1/17/22. Feeding ThePatternSite.

Picture of my dog

Today is a trading holiday in the US.

If you wish to support the website, then try one of these options.

  1. Perhaps the best way is come to this site and click on an image of one of my books. You’ll find the images at the bottom of the page. The click will take
    you to
    Amazon.com.
    The link passes a code to them and I receive a small referral fee but only if you buy something while there during the visit. You do NOT need to buy the book. It’s just a vehicle to get you to Amazon
    with the referral code.

    So each time you want to use Amazon.com to buy something, come to this site first. The referral is free (it does not increase the cost of anything you buy), it’s easy to do, and it supports this site.

  2. You can click on an ad. Please don’t click on them just to run up the score. Google frowns on that. If you see something of interest, then click the ad and visit their site.
    Ad sales are where most of the financial support for the site comes from. Some of you may have to turn off your ad blocker to see the ads.
  3.  

  4. Finally, you can donate to the site directly. The home page (and some other pages as well) has a Donate link at the bottom of the page. For a limited time and
    while supplies last, I’ll throw in a free book to those with addresses in the US who donate $100 or more. See the donate page for details.

Thanks! — Tom Bulkowski

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Friday 1/14/22. Pattern Trading Setups for the Weekend.

$ $ $

Here’s a symbol list of 130 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
AXDX, AKAM, ALKS, AEE, AXP, AMN, AWI, ASH, AGO, AVA, BCPC, BLL, BECN, BOOT, CHKP, CNO, CMCO, COST, COTY, CROX, CCK, CTS, DDS, DTE, EMN, EPAM, EL, EZPW, FDS, FORM, IT, GNW, GOOGL, HD, HOV, HUBG, JBHT, ILMN, IPAR, IBKR, IVC, JKHY, JAZZ, JBLU, KBH, KLAC, LAWS, LXU, MAN, MAS, MDC, MCO, MS, NKE, OMCL, OMC, OTEX, OUT, OXM, PANW, PDCO, PTEN, PPL, PINC, PHM, DGX, RMBS, RJF, REV, ROG, SAIC, SXI, SCS, TDC, TER, TEVA, TXN, TOL, TSCO, VRSN, WERN, WLK, WMB, WDAY, IYM, IAI, IHI, IEO, IEZ, IHE, ICF, IGE, EWA, EWO, EWC, EWQ, EWG, EWH, EWJ, EWM, EPP, EWS, EWP, EWD, EWL, EWT, EWU, DBA, PBE, PXJ, IEV, IXC, ILF, SSO, MXI, XLP, USO, SMH. Clink 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

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 Symbol  Chart Pattern  Bullish 
 Bearish 
Start End Industry
ASH Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Chemical (Basic)
BSET Ugly double bottom        12/01/2021 12/20/2021 Furn/Home Furnishings
BA Double Bottom, Adam and Adam        12/01/2021 12/20/2021 Aerospace/Defense
BOOT Pipe top        12/27/2021 01/03/2022 Shoe
CCK Broadening bottom        11/30/2021 12/31/2021 Packaging and Container
DRQ Triangle, symmetrical        12/08/2021 12/27/2021 Oilfield Svcs/Equipment
BOOM Double Bottom, Eve and Eve        12/02/2021 12/15/2021 Metal Fabricating
EPAM Pipe top        12/06/2021 12/13/2021 IT Services
FAST Double Top, Eve and Eve        12/13/2021 12/30/2021 Retail Building Supply
HSII Ugly double bottom        12/20/2021 12/31/2021 Human Resources
HP Ugly double bottom        12/02/2021 12/20/2021 Petroleum (Producing)
HD Pipe top        12/27/2021 01/03/2022 Retail Building Supply
HON Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Aerospace/Defense
DHI Double Top, Adam and Eve        12/13/2021 12/31/2021 Homebuilding
NSP Pipe top        12/27/2021 01/03/2022 Human Resources
IBP Triple top        11/22/2021 12/28/2021 Retail Building Supply
IPAR Pipe top        12/27/2021 01/03/2022 Toiletries/Cosmetics
JBLU Pipe bottom        11/22/2021 11/29/2021 Air Transport
JNJ Ugly double bottom        11/30/2021 12/21/2021 Medical Supplies
KALU Double Bottom, Eve and Eve        11/30/2021 12/20/2021 Metals and Mining (Div.)
LHX Head-and-shoulders bottom        12/01/2021 01/05/2022 Aerospace/Defense
LH Double Top, Eve and Eve        12/16/2021 12/31/2021 Medical Services
LEN Double Top, Eve and Eve        12/13/2021 12/29/2021 Homebuilding
LLY Double Top, Adam and Eve        12/16/2021 12/30/2021 Drug
MHO Pipe top        12/06/2021 12/13/2021 Homebuilding
MTRX Pipe bottom        12/20/2021 12/27/2021 Oilfield Svcs/Equipment
FB Ugly double bottom        12/03/2021 12/20/2021 E-Commerce
MCO Triangle, ascending        11/16/2021 12/31/2021 Information Services
OMC Cup with handle        10/15/2021 01/13/2022 Advertising
OXM Pipe top        12/27/2021 01/03/2022 Apparel
PCG Triple bottom        12/03/2021 01/06/2022 Electric Utility (West)
ROK Triple top        11/22/2021 12/30/2021 Diversified Co.
SLB Double Bottom, Eve and Adam        12/02/2021 12/20/2021 Oilfield Svcs/Equipment
SEIC Ugly double bottom        12/20/2021 01/03/2022 IT Services
SWN Triangle, symmetrical        12/02/2021 01/11/2022 Natural Gas (Diversified)
SCS Ugly double bottom        12/20/2021 01/11/2022 Furn/Home Furnishings
TEVA Broadening bottom        12/03/2021 01/13/2022 Drug
TMO Triple top        11/26/2021 12/31/2021 Precision Instrument
TOL Pipe top        12/06/2021 12/13/2021 Homebuilding
WSO Pipe top        12/06/2021 12/13/2021 Retail Building Supply
WU Head-and-shoulders bottom        11/03/2021 12/20/2021 Financial Services

 

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Thursday 1/13/22. Intraday Market Direction: Nasdaq

The index climbed by 0.2% or 34.94 points. Since 02/05/1971 the index made 698 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.7% on 405 occasions.

     Average loss was -0.8% on 293 occasions.

Expect the index to close higher 58.0% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 234/407 or 57.5% of the time.

     The prediction of the index closing lower has been right 60/127 or 47.2% of the time.

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

Picture of the Nasdaq composite on the 5 minute scale.

$ $ $

I show a picture of the Nasdaq composite on the 5-minute scale.

I drew a horizontal line at A joining B. It shows overhead resistance and underlying support circling around that line.

At A, we see the index bumping up against overhead resistance. At B, it’s less clear if it’s support or resistance. What it shows is that the index is hung up at the line.

Will it make its move? Certainly, but when and in what direction, I don’t know. My feeling is the index will move higher. It was trending up going into today’s (Wednesday’s) move.
The above probabilities also support a move upward.

$ $ $

Here’s a symbol list of 136 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
AXDX, AEIS, DOX, AEO, AEP, AXP, ANIK, APA, AMAT, AVY, AXS, BLL, BIIB, BOOT, BG, CALM, CLS, CHD, CINF, CLX, COTY, CRH, CCK, CMI, CW, XRAY, DFS, ^DJI, DRQ, EMN, EBAY, EIX, EFX, EVH, EZPW, FIS, FIVN, FORM, FWRD, GIS, GNW, GL, GS, GOOGL, GES, HSY, HD, HON, HUBG, JBHT, IPAR, IVC, NVTA, JKHY, JAZZ, JNJ, KALU, K, KFRC, KLAC, KLIC, LAMR, LAWS, LOW, MAN, MRTN, MAS, MS, MOS, CNR, NTGR, NEU, NOC, NUS, ORI, OMC, OUT, OXM, PDCO, PTEN, PETS, PICO, PHM, DGX, RL, REV, RES, SLB, SAIC, SMG, SHW, SLGN, SCCO, SR, SXI, TDC, TEVA, TMO, TSCO, TZOO, TG, TREX, SLCA, UNM, V, WRB, WERN, WSM, IAI, DDM, FXI, ICF, SLV, EWO, ECH, EEM, EWG, EWH, EWS, EZA, EWY, TUR, EWU, PPA, PBE, PJP, IXC, ILF, UNG, USO. Clink 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   14,275.20      
 Weekly S2   14,331.54   56.34   
 Monthly S1   14,731.80   400.25   
 Weekly S1   14,759.97   28.17   
 Daily S2   15,006.50   246.53   
 Daily S1   15,097.44   90.95   
 Low   15,117.29   19.85   Yes! The Low is close to the Daily S1.
 Close   15,188.39   71.10   
 61.8% Down from Intraday High   15,194.35   5.96   Yes! The 61.8% Down from Intraday High is close to the Close.
 Daily Pivot   15,208.24   13.88   Yes! The Daily Pivot is close to the 61.8% Down from Intraday High.
 50% Down from Intraday High   15,218.16   9.92   Yes! The 50% Down from Intraday High is close to the Daily Pivot.
 38.2% Down from Intraday High   15,241.96   23.80   
 Open   15,263.10   21.13   
 Daily R1   15,299.18   36.08   
 Weekly Pivot   15,306.05   6.87   Yes! The Weekly Pivot is close to the Daily R1.
 Monthly Pivot   15,316.63   10.58   Yes! The Monthly Pivot is close to the Weekly Pivot.
 High   15,319.03   2.40   Yes! The High is close to the Monthly Pivot.
 Daily R2   15,409.98   90.95   
 Weekly R1   15,734.48   324.50   
 Monthly R1   15,773.23   38.75   
 Weekly R2   16,280.56   507.34   
 Monthly R2   16,358.06   77.50   


Wednesday 1/12/22. A Look At Indicators

Picture of the chart pattern indicator

This is a picture of the chart pattern indicator on the daily scale. The indicator is the line chart below a chart of the S&P 500 composite.

The indicator turned bearish (vertical red bar on the far right of the chart) a week ago. Because a signal can change for up to a week, it appears the signal won’t disappear.

The indicator near the bottom of the chart shows it ticking up today (Tuesday). That’s good for bulls, and it shows that the markets should turn upward.

But as I mentioned, that slight uptick could be bogus. We’ll have to wait and see.

Picture of the percent down indicators

The red line is the percentage of stocks at least 20% below their 1-year high (plotted upside down). The blue line is the average percentage drop of stocks below their 1-year high (plotted upside down).

Shown as a red line on the above chart…

On Tuesday, 29% of stocks in my database are in bear market territory (down at least 20% from their 1-year high).

A week ago, it was 24%.

The fewest was 8% on 03/15/2021.

And the most was 39% on 12/01/2021.

Shown as a blue line on the above chart…

The 459 stocks in my database are down an average of 15% from their yearly high.

A week ago, the average was 14%.

The peak was 8% on 03/15/2021.

And the bottom was 19% on 12/01/2021.

The red line, which is the more sensitive of the two, showed a big drop from the last week.

That’s bearish. Even the more staid blue line dropped this week.

However, if you look at the red line, notice that the valleys are forming higher lows. I hope that makes sense. Each low is above the prior one, at least since December. So I view
that development as bullish.

Even though this week showed weakness, the larger picture is bullish. Along with the prior chart, which is bullish, too, it looks like the market should rise over the next week.

$ $ $

Here’s a symbol list of 121 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ANF, ACIW, ADBE, ADTN, AEIS, AES, AKAM, AA, ADS, AEO, AMWD, ABC, AMN, ANTM, AMAT, ARW, AVY, AXS, BLL, BA, BKNG, BOOT, BBW, BG, CAL, CLS, CENX, CRL, CLF, CTSH, CCRN, DHR, DDS, DTE, FIS, FISV, FLEX, FORM, FDP, GIS, GNW, GOOGL, GES, HAYN, HTLD, HD, HUBG, JBHT, IDA, ILMN, NSP, ITGR, IPAR, JKHY, K, KFRC, LH, LAWS, LLY, LOW, LXU, MANH, MAS, MSFT, MS, MUR, NEU, NKE, OMC, OUT, OMI, OXM, PKG, PDCO, PETS, PCG, PGR, PHM, KWR, RES, CRM, SEE, NOW, SLGN, SWN, SNPS, TECH, TFX, TDC, TXN, TSCO, TG, VEEV, WERN, WLK, WWW, WDAY, IHE, DDM, ICF, IYH, IHF, ECH, EEM, EWM, EWS, EZA, DBA, PBE, PEJ, GLD, XLV, XAR, VHT. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

— Thomas Bulkowski

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Tuesday 1/11/22. Slider Trading Quiz! General Electric

The index dropped by -0.4% or -162.79 points. Since 10/01/1928 the index made 932 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.6% on 472 occasions.

     Average loss was -0.7% on 460 occasions.

Expect the index to close higher 50.6% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 236/421 or 56.1% of the time.

     The prediction of the index closing lower has been right 44/93 or 47.3% of the time.

$ $ $

I show another slider trading quiz featuring General Electric: GE

$ $ $

Here’s a symbol list of 152 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ANF, AYI, AES, ALKS, AYX, AMZN, AEE, AMN, AON, AMAT, ARW, ADP, AVA, BMI, BIG, BBW, BG, CALM, CF, CRL, CHS, CLNE, CTSH, ED, COST, COTY, CRH, CCRN, CW, DECK, DDS, D, EMR, WIRE, EPAM, EFX, EL, EVH, XOM, FAST, FIS, FDP, IT, GE, GNW, GPN, EVRG, GES, HSC, HAYN, HQY, HTLD, HSII, HSIC, HD, IDA, IEX, ILMN, NSP, ITGR, TILE, IPG, IPI, JKHY, JAZZ, KFRC, KSS, LHX, LRCX, LAMR, LDOS, LNC, LOW, LXU, MNDT, MCHX, MLM, MA, MTRX, FB, MU, MCO, MUR, MYGN, NBR, NFG, CNR, NTGR, NJR, NEU, NKE, OMC, ASGN, OMI, PKG, PTEN, PAYX, PRFT, PINC, PGR, KWR, QCOM, RL, ROST, SEE, SWN, SCS, SUM, SRDX, TPR, TPX, TER, TEVA, TJX, TREX, V, VC, WRB, WSO, WU, WLK, WOLF, WWW, IYC, IHI, BOTZ, ICF, EWA, EWG, EWD, EWL, TUR, DBA, PHO, ROBO, IXC, XLY, XLF, XHB, XRT, VIS. Clink 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 Dow industrials, sorted by value. When several are near each other (small differences),
the area might act as support or resistance.

— Thomas Bulkowski

Top

© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   33,073.95      
 Monthly S1   34,571.41   1,497.46   
 Daily S2   35,426.10   854.69   
 Weekly S2   35,536.56   110.46   
 Low   35,639.96   103.40   
 Daily S1   35,747.48   107.52   
 Monthly Pivot   35,762.03   14.55   Yes! The Monthly Pivot is close to the Daily S1.
 Weekly S1   35,802.71   40.68   Yes! The Weekly S1 is close to the Monthly Pivot.
 61.8% Down from Intraday High   35,844.43   41.71   Yes! The 61.8% Down from Intraday High is close to the Weekly S1.
 50% Down from Intraday High   35,907.59   63.16   
 Daily Pivot   35,961.35   53.76   
 38.2% Down from Intraday High   35,970.75   9.40   Yes! The 38.2% Down from Intraday High is close to the Daily Pivot.
 Close   36,068.87   98.13   
 High   36,175.21   106.34   
 Open   36,175.21   0.00   Yes! The Open is close to the High.
 Daily R1   36,282.73   107.52   
 Weekly Pivot   36,377.68   94.95   
 Daily R2   36,496.60   118.91   
 Weekly R1   36,643.84   147.24   
 Weekly R2   37,218.80   574.97   
 Monthly R1   37,259.49   40.68   Yes! The Monthly R1 is close to the Weekly R2.
 Monthly R2   38,450.11   1,190.62   


Monday 1/10/22. Market Monday: The Week Ahead

My Prediction

Picture of the Dow transports on the daily scale.

Shown is the Dow transports index on the daily scale.

It appears that pattern AB is a double bottom but it isn’t. Rather, it’s just squiggles on the chart. Why?

Answer: Because it hasn’t confirmed as a valid chart pattern. Still confused? To confirm the pattern, the index has to close above the peak between the two bottoms. I show
that with line C. You can see on the chart that the index didn’t close above that line (at least so far).

Compare the potential double bottom at AB with the one at D. The move in the index (after double bottom D) is how the pattern is supposed to behave. It confirms and price rockets upward. Unfortunately,
that’s rare when you see such a strong push higher.

It looks at if the index is going lower but it could just be pausing before moving up.

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A Brief Look Back

Picture of a flower from my garden.

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.

Monday: Up 246.76 points.

Tuesday: Up 214.59 points.

Wednesday: Down 392.54 points.

Thursday: Down 170.64 points.

Friday: Down 4.81 points.

For the Week…

The Dow industrials were down 106.64 points or 0.3%.

The Nasdaq composite was down 709.07 points or 4.5%.

The S&P 500 index was down 89.15 points or 1.9%.

Year to Date…

Dow Industrials

     2.0% down from the high of 36,952.65 on 01/05/2022.

     0.3% up from the low of 36,111.53 on 01/07/2022.

Nasdaq

     5.8% down from the high of 15,852.14 on 01/04/2022.

     0.4% up from the low of 14,877.63 on 01/07/2022.

S&P 500

     2.9% down from the high of 4,818.62 on 01/04/2022.

     0.3% up from the low of 4,662.74 on 01/07/2022.

Options Expiration

No options expire this week.

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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.

Index S2 S1 Pivot R1 R2
Dow Industrials (^DJI): Daily   35,971   36,101   36,242   36,372   36,513 
Weekly   35,591   35,911   36,432   36,752   37,273 
Monthly   33,128   34,680   35,816   37,368   38,504 
S&P500 (^GSPC): Daily   4,637   4,657   4,683   4,702   4,728 
Weekly   4,564   4,620   4,719   4,776   4,875 
Monthly   4,340   4,509   4,664   4,832   4,987 
Nasdaq (^IXIC): Daily   14,701   14,819   14,995   15,112   15,288 
Weekly   14,247   14,592   15,222   15,566   16,196 
Monthly   14,191   14,563   15,232   15,605   16,274 
  • 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:

Pivot point: P = (H + L + C)/3

First resistance level: R1 = (2 * P) – L

First support level: S1 = (2 * P) – H)

Second resistance level: R2 = P + (R1 – S1)

Second support level: S2 = P – (R1 – S1)

H = high price , L=low price, C=closing price

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Earnings, Chart Patterns & Industries

Earnings season will be starting in about 6 days.

Here’s a symbol list of 133 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ANF, ACN, AMD, AKAM, AA, ADS, AEP, AMGN, APH, ANTM, AON, ARW, ATO, AVA, AZTA, BMI, BMRN, BBW, CBT, CRL, CAG, D, DUK, BOOM, EIX, EMR, WIRE, EOG, EPAM, FOE, FIS, IT, GE, HSC, HSII, DHI, IDXX, NSP, IPG, ISRG, IVC, JKHY, JBLU, JNJ, KBH, KFRC, LHX, LH, L, LXU, MHO, MTSI, MAN, MCHX, MTRN, MTRX, MGEE, MU, MCO, MYGN, NBR, ^IXIC, NFLX, NTAP, NI, NWPX, OMC, OTEX, PKE, PRFT, PICO, POR, PPG, PPL, PG, PEG, QCOM, DGX, RMBS, ROST, RES, ^GSPC, SLB, SCHW, SO, SCS, SUM, TPX, TEVA, TXN, TMO, TRV, TREX, SLCA, UGI, VRTX, VC, VMC, WRB, WMT, WU, WEX, ITB, FTEC, BOTZ, IYH, IHF, IGV, EWO, EWK, EWJ, EWT, TUR, QLD, PXJ, QQQ, PHO, ROBO, IXC, ILF, XLF, XHB, SPY, MGK. Clink 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.

This Week Last Week
1. Trucking/Transp. Leasing 1. Trucking/Transp. Leasing
2. Petroleum (Integrated) 2. Retail Building Supply
3. Semiconductor Cap Equip. 3. Semiconductor Cap Equip.
4. Natural Gas (Diversified) 4. Cement and Aggregates
5. Cement and Aggregates 5. Semiconductor
6. Retail Building Supply 6. Precision Instrument
7. Petroleum (Producing) 7. Natural Gas (Diversified)
8. Securities Brokerage 8. Retail Store
9. Semiconductor 9. Homebuilding
10. Insurance (Life) 10. Human Resources
Best Performing Above Worst Performing Below
50. Diversified Co. 50. Natural Gas (Distributor)
51. Drug 51. Aerospace/Defense
52. E-Commerce 52. Investment Co. (Foreign)
53. Medical Services 53. Air Transport
54. Oilfield Svcs/Equipment 54. Biotechnology
55. Financial Services 55. Financial Services
56. Apparel 56. Healthcare Information
57. Biotechnology 57. Apparel
58. Retail (Special Lines) 58. Retail (Special Lines)
59. Short ETFs 59. Short ETFs
60. Healthcare Information 60. Oilfield Svcs/Equipment

— Thomas Bulkowski

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Friday 1/7/22. Pattern Trading Setups for the Weekend.

$ $ $

Here’s a symbol list of 114 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ANF, ACN, AES, ALK, AFG, ABC, AIZ, ATO, BSET, BZH, BBBY, BBY, CE, CENX, CRL, CHKP, CLNE, CSGS, DECK, XRAY, D, EXP, EBAY, EIX, EPAM, FIS, FMC, FCX, IT, GS, GGG, HE, HP, HSIC, HD, DHI, IEX, ILMN, NSP, IBP, IPAR, IVC, JKHY, K, KLAC, MTRX, MDC, MCO, NFG, CNR, NFLX, NTGR, NJR, NEE, NXGN, NKE, NI, NWPX, OLN, OTEX, PKG, PKE, PYPL, PRFT, PCG, PICO, PLXS, PPG, PPL, PG, PHM, KWR, RL, RGS, ROK, SO, SWN, SCS, TFX, TRV, TREX, UGI, VMI, V, VC, WRB, WERN, IYM, IYE, ITB, IYH, IHF, SLV, EWJ, EWM, EPP, EWY, TUR, EWU, DBA, PXJ, XHB, XLB, XLU, USO. Clink 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

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 Symbol  Chart Pattern  Bullish 
 Bearish 
Start End Industry
MMM Double Bottom, Eve and Eve        12/03/2021 12/20/2021 Diversified Co.
AXDX Pipe bottom        12/06/2021 12/13/2021 Medical Services
ALK Pipe bottom        11/22/2021 11/29/2021 Air Transport
AA Pipe bottom        11/29/2021 12/06/2021 Aerospace/Defense
AMED Ugly double bottom        12/06/2021 12/20/2021 Medical Services
AEL Pipe bottom        11/22/2021 11/29/2021 Insurance (Life)
AIG Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Insurance (Prop/Casualty)
APH Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Electronics
APA Pipe bottom        12/13/2021 12/20/2021 Petroleum (Producing)
APOG Double Bottom, Adam and Adam        11/30/2021 12/20/2021 Building Materials
ACGL Scallop, ascending and inverted        11/30/2021 12/20/2021 Insurance (Prop/Casualty)
ARW Three Rising Valleys        09/20/2021 12/02/2021 Electronics
AGO Pipe bottom        12/13/2021 12/20/2021 Insurance (Life)
ADSK Ugly double bottom        11/24/2021 12/14/2021 Computer Software and Svcs
ADP Double Bottom, Adam and Adam        12/01/2021 12/20/2021 IT Services
AVNT Pipe bottom        12/13/2021 12/20/2021 Chemical (Specialty)
AXS Double Bottom, Eve and Adam        11/30/2021 12/20/2021 Insurance (Prop/Casualty)
BECN Pipe bottom        12/13/2021 12/20/2021 Retail Building Supply
BIO Pipe top        10/25/2021 11/01/2021 Medical Supplies
BA Pipe bottom        12/13/2021 12/20/2021 Aerospace/Defense
BOOT Pipe top        11/15/2021 11/22/2021 Shoe
BG Triple bottom        12/02/2021 12/20/2021 Food Processing
CBT Double Bottom, Adam and Adam        12/01/2021 12/20/2021 Chemical (Diversified)
CACI Double Bottom, Adam and Adam        12/01/2021 12/20/2021 IT Services
CALM Double Bottom, Adam and Adam        12/17/2021 12/29/2021 Food Processing
CLS Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Electronics
CLF Pipe bottom        12/13/2021 12/20/2021 Metals and Mining (Div.)
CLR Pipe bottom        12/13/2021 12/20/2021 Petroleum (Producing)
GLW Head-and-shoulders bottom        12/01/2021 01/03/2022 Telecom. Equipment
COST Rising wedge        11/29/2021 01/04/2022 Retail Store
COTY Double Bottom, Eve and Eve        12/02/2021 12/20/2021 Toiletries/Cosmetics
CR Pipe bottom        12/20/2021 12/20/2021 Diversified Co.
DHR Double Top, Eve and Eve        11/30/2021 12/31/2021 Precision Instrument
DVN Pipe bottom        12/13/2021 12/20/2021 Natural Gas (Diversified)
DFS Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Financial Services
EXP Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Cement and Aggregates
EIX Triple top        12/07/2021 12/29/2021 Electric Utility (West)
EOG Pipe bottom        12/13/2021 12/20/2021 Natural Gas (Distributor)
EQT Pipe bottom        11/29/2021 12/06/2021 Natural Gas (Diversified)
RE Head-and-shoulders bottom        10/29/2021 12/20/2021 Insurance (Prop/Casualty)
XOM Double Bottom, Eve and Adam        12/02/2021 12/20/2021 Petroleum (Integrated)
FIS Rounding bottom        11/12/2021 01/06/2022 Computer Software and Svcs
FLS Pipe bottom        12/13/2021 12/20/2021 Machinery
FTNT Pipe bottom        11/29/2021 12/06/2021 Computer Software and Svcs
FCX Triple bottom        11/26/2021 12/15/2021 Metals and Mining (Div.)
FRD Big W        12/13/2021 12/31/2021 Building Materials
GPS Double Bottom, Eve and Eve        12/02/2021 12/15/2021 Apparel
GE Pipe bottom        12/13/2021 12/20/2021 Diversified Co.
GNW Double Bottom, Eve and Adam        11/30/2021 12/20/2021 Insurance (Life)
GL Double Bottom, Adam and Adam        12/01/2021 12/20/2021 Insurance (Life)
GPRO Triangle, symmetrical        11/18/2021 01/06/2022 Electronics
GFF Double Bottom, Adam and Adam        11/16/2021 12/20/2021 Building Materials
THG Pipe top        12/06/2021 12/13/2021 Insurance (Prop/Casualty)
HP Pipe bottom        11/29/2021 12/06/2021 Petroleum (Producing)
IPG Ugly double bottom        11/30/2021 12/20/2021 Advertising
ISRG Pipe bottom        11/29/2021 12/06/2021 Medical Supplies
IVC Double Bottom, Adam and Eve        12/06/2021 12/20/2021 Medical Supplies
JBLU Triangle, ascending        12/01/2021 01/06/2022 Air Transport
KALU Pipe bottom        12/13/2021 12/20/2021 Metals and Mining (Div.)
LZB Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Furn/Home Furnishings
LMT Three Rising Valleys        11/03/2021 12/20/2021 Aerospace/Defense
MAN Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Human Resources
MRO Pipe bottom        12/13/2021 12/20/2021 Petroleum (Integrated)
MCHX Rectangle bottom        11/30/2021 01/06/2022 Advertising
MRTN Pipe bottom        12/13/2021 12/20/2021 Trucking/Transp. Leasing
MRK Ugly double bottom        12/07/2021 01/03/2022 Drug
MCO Pipe top        10/25/2021 11/01/2021 Information Services
NBR Pipe bottom        11/29/2021 12/06/2021 Oilfield Svcs/Equipment
NFG Three Rising Valleys        11/04/2021 12/20/2021 Natural Gas (Diversified)
NOV Ugly double bottom        12/02/2021 12/20/2021 Oilfield Svcs/Equipment
NTGR Rising wedge        11/15/2021 01/06/2022 Telecom. Equipment
NWL Double Bottom, Adam and Adam        12/01/2021 12/20/2021 Household Products
NWPX Pipe bottom        12/13/2021 12/20/2021 Building Materials
OXY Pipe bottom        12/13/2021 12/20/2021 Petroleum (Producing)
OMC Ugly double bottom        11/26/2021 12/20/2021 Advertising
OUT Pipe bottom        12/13/2021 12/20/2021 Advertising
OMI Double Bottom, Eve and Eve        12/02/2021 12/14/2021 Medical Supplies
OXM Pipe bottom        12/13/2021 12/20/2021 Apparel
PANW Three Rising Valleys        10/04/2021 12/06/2021 Computer Software and Svcs
PATK Double Bottom, Adam and Adam        12/13/2021 12/20/2021 Retail Building Supply
PTEN Ugly double bottom        12/02/2021 12/20/2021 Oilfield Svcs/Equipment
PNW Triangle, ascending        10/20/2021 12/22/2021 Electric Utility (West)
PPL Rising wedge        11/10/2021 01/06/2022 Electric Utility (East)
PRU Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Insurance (Life)
DGX Double Top, Eve and Eve        12/17/2021 12/31/2021 Medical Services
RGA Pipe bottom        11/22/2021 11/29/2021 Insurance (Life)
RLI Diamond top        11/03/2021 01/03/2022 Insurance (Prop/Casualty)
RCKY Double Bottom, Eve and Adam        12/02/2021 12/20/2021 Shoe
ROST Pipe bottom        12/13/2021 12/20/2021 Retail (Special Lines)
RES Ugly double bottom        12/02/2021 12/20/2021 Oilfield Svcs/Equipment
SCCO Double Bottom, Eve and Eve        11/26/2021 12/20/2021 Metals and Mining (Div.)
LUV Pipe bottom        12/13/2021 12/20/2021 Air Transport
SXI Pipe bottom        12/13/2021 12/20/2021 Diversified Co.
SUM Double Bottom, Eve and Adam        12/01/2021 12/20/2021 Cement and Aggregates
SRDX Big W        12/02/2021 12/17/2021 Medical Supplies
TDOC Triangle, descending        12/06/2021 01/04/2022 Healthcare Information
TFX Ugly double bottom        12/01/2021 12/20/2021 Diversified Co.
TPX Head-and-shoulders complex bottom        10/28/2021 12/20/2021 Furn/Home Furnishings
TDC Triangle, symmetrical        11/29/2021 12/17/2021 Computer Software and Svcs
TKR Pipe bottom        12/13/2021 12/20/2021 Metal Fabricating
RIG Triple bottom        12/06/2021 12/31/2021 Oilfield Svcs/Equipment
UGI Ugly double bottom        11/30/2021 12/20/2021 Natural Gas (Distributor)
UNM Big W        12/01/2021 12/20/2021 Insurance (Diversified)
VLO Pipe bottom        12/13/2021 12/20/2021 Petroleum (Integrated)
VC Pipe bottom        12/13/2021 12/20/2021 Electronics
WERN Double Bottom, Adam and Adam        12/02/2021 12/20/2021 Trucking/Transp. Leasing
WLK Double Bottom, Adam and Eve        12/02/2021 12/20/2021 Chemical (Basic)
WEX Double Bottom, Eve and Eve        12/01/2021 12/15/2021 Information Services

 

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Thursday 1/6/22. Cryptocurrency Ethereum: Bearish

The Nasdaq dropped by -3.3% or -522.55 points. Since 02/05/1971 the index made 17 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 1.6% on 8 occasions.

     Average loss was -1.4% on 9 occasions.

Expect the index to close lower 52.9% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 234/407 or 57.5% of the time.

     The prediction of the index closing lower has been right 59/126 or 46.8% of the time.

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

Picture of the Nasdaq composite on the 5 minute scale.

$ $ $

I show a picture of Ethereum on the daily scale.

AB is a confirmed double bottom chart pattern. It confirms when the currency closes above the peak (C) between the two bottoms, which it does going up to D.
Confirmation means the currency is going higher.

Unfortunately, it was a fake bullish breakout and the currency tumbled. Combined with the peak(s) in early November, it made a double or even a triple top, suggesting a bearish move.
That move took the index lower to where it is now.

It still looks bearish to me, so I expect additional declines.

$ $ $

Here’s a symbol list of 184 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ANF, ADBE, AES, APD, ATSG, ALK, ADS, AEL, AFG, AIG, APA, ACGL, ARW, AIZ, AVNT, BSET, BZH, BBBY, BBY, BMY, BLDR, CAL, CLS, CRL, CVX, CINF, CLNE, CLF, CNA, CGNX, CLR, XRAY, DDS, ^DJT, D, DOV, BOOM, EXP, EBAY, WIRE, EPAM, EFX, EQT, EVH, XOM, EZPW, FAST, FIS, FMC, FORM, FCX, FDP, GNW, GL, GS, GOOGL, GPRO, GGG, HBI, THG, HSC, HD, HUBG, IEX, NSP, IBP, IBKR, IPG, IVC, JKHY, JBLU, JNJ, KSS, LHX, LRCX, LAMR, LANC, L, LXU, M, MCHX, MRTN, MTRX, MDC, MSFT, MLKN, MCO, MLI, NBR, ^IXIC, NOV, CNR, NWL, NEU, NKE, JWN, ORI, OMCL, OMI, PATK, PTEN, PYPL, PRFT, PFE, PICO, PNW, KWR, RL, RGA, ROK, RES, CRM, SO, SWN, SXI, SSYS, SUM, TPR, TGT, TECH, TDOC, TFX, TPX, TXT, TJX, TSCO, RIG, TZOO, TG, SLCA, VMI, V, VMC, WRB, WERN, WLK, IAI, IYE, ITB, FTEC, IAT, SLV, EWO, EWK, EWC, EEM, EWH, EWJ, EWW, EWS, EWY, TUR, EWU, QLD, PXJ, QQQ, IXC, IXN, MXI, XLF, XHB, XRT, XAR, XLK, VIS, MGK. Clink 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   14,245.80      
 Monthly S1   14,672.98   427.19   
 Daily S2   14,769.43   96.45   
 Daily S1   14,934.80   165.37   
 Low   15,095.18   160.38   
 Close   15,100.17   4.99   Yes! The Close is close to the Low.
 Weekly S1   15,195.58   95.41   
 Daily Pivot   15,260.55   64.97   
 61.8% Down from Intraday High   15,282.79   22.24   Yes! The 61.8% Down from Intraday High is close to the Daily Pivot.
 Monthly Pivot   15,287.23   4.44   Yes! The Monthly Pivot is close to the 61.8% Down from Intraday High.
 Weekly S2   15,291.00   3.77   Yes! The Weekly S2 is close to the Monthly Pivot.
 50% Down from Intraday High   15,340.74   49.74   
 38.2% Down from Intraday High   15,398.69   57.95   
 Daily R1   15,425.92   27.23   Yes! The Daily R1 is close to the 38.2% Down from Intraday High.
 Weekly R1   15,453.11   27.19   Yes! The Weekly R1 is close to the Daily R1.
 Open   15,547.16   94.05   
 Weekly Pivot   15,548.53   1.37   Yes! The Weekly Pivot is close to the Open.
 High   15,586.30   37.77   Yes! The High is close to the Weekly Pivot.
 Monthly R1   15,714.41   128.11   
 Daily R2   15,751.67   37.26   Yes! The Daily R2 is close to the Monthly R1.
 Weekly R2   15,806.06   54.39   
 Monthly R2   16,328.66   522.60   


Wednesday 1/5/22. A Look At Indicators

Picture of the chart pattern indicator

This is a picture of the chart pattern indicator on the daily scale. The indicator is the line chart below a chart of the S&P 500 composite.

The CPI shows a green bar on the far right of the chart. It looks like the index is taking a pause here in preparation for another upsurge. It’s a flag pattern
where we see a pause near the middle of a strong run higher.

Picture of the percent down indicators

The red line is the percentage of stocks at least 20% below their 1-year high (plotted upside down). The blue line is the average percentage drop of stocks below their 1-year high (plotted upside down).

Shown as a red line on the above chart…

On Tuesday, 24% of stocks in my database are in bear market territory (down at least 20% from their 1-year high).

A week ago, it was 28%.

The fewest was 8% on 03/15/2021.

And the most was 39% on 12/01/2021.

Shown as a blue line on the above chart…

The 459 stocks in my database are down an average of 14% from their yearly high.

A week ago, the average was 14%.

The peak was 8% on 03/15/2021.

And the bottom was 19% on 12/01/2021.

In this chart, the red line has confirmed a double bottom pattern. That’s bullish, but the indicator has already climbed a good amount. The blue line looks like it’s
about to peak, too, joining the horizontal move that started back in July.

The prior chart is bullish and this one shows caution, but it’s bullish, too. Together I believe the index will continue to rise.

$ $ $

Here’s a symbol list of 184 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ABT, ACN, ADTN, AMD, ATSG, ALK, AA, AMZN, AMED, AEE, AEP, AXP, ABC, AMN, ANTM, APA, ADM, AWI, AVA, BSET, BECN, BIO, BAH, EPAY, CACI, CALM, CLS, CNP, CRL, CHKP, CINF, CNA, COP, CRH, XRAY, DVN, DFS, D, DTE, DUK, EBAY, EMR, EOG, EPAM, EXPD, XOM, FOE, FE, FLEX, FMC, FORM, FWRD, GE, GNW, GILD, GL, GS, GPRO, HBI, HSC, HIG, HAYN, HQY, HSII, HNI, HON, IDXX, ISRG, NVTA, JBLU, KFRC, LRCX, LAMR, LAWS, LLY, L, LXU, MAN, MRO, MRTN, MTRX, FB, MLKN, MS, NBR, NJR, NWL, NEE, NVDA, OGE, OMCL, OMC, ASGN, OMI, PYPL, PRFT, PCG, PINC, PRU, PEG, KWR, RJF, RGS, RNG, RLI, CRM, SLB, SIGI, SKX, SO, LUV, SSYS, TDOC, TRV, SLCA, UNM, VFC, WERN, WU, WLK, WEX, WDAY, ITA, IAI, IEZ, IHE, DDM, FTEC, ICF, IYH, IAT, IGE, IYF, EWO, EWK, EWC, EEM, EWQ, EWG, EWH, EWI, EWD, EWT, THD, TUR, EWU, QLD, PPA, PXJ, QQQ, PHO, IXC, IXN, MXI, XLE, XLF, XLV, XRT, XLK, SMH, VHT, MGK. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

— Thomas Bulkowski

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Tuesday 1/4/22. Slider Trading Quiz! Frontier Airlines (2)

The index climbed by 0.7% or 246.76 points. Since 10/01/1928 the index made 697 similar moves on a percentage basis. After those moves, the next day’s…

     Average gain was 0.6% on 383 occasions.

     Average loss was -0.6% on 314 occasions.

Expect the index to close higher 54.9% of the time.

Weekly, since inception on 6/14/2011:

     The prediction of the index closing higher has been right 235/420 or 56.0% of the time.

     The prediction of the index closing lower has been right 44/93 or 47.3% of the time.

$ $ $

I show another slider trading quiz featuring Frontier Airlines: FRNT 2

$ $ $

Here’s a symbol list of 209 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ANF, ACN, APD, ALRM, ALK, AA, ALKS, AYX, DOX, AMED, AEE, AFG, AMWD, AMGN, AMN, APH, APA, ARCB, ASH, AGO, ADSK, AVY, AVNT, AVA, AXS, AZTA, BSET, BAX, BECN, BIG, BMRN, BKH, BA, BMY, BBW, BLDR, CBT, CNP, CVX, CHS, CIEN, CINF, CLF, CGNX, CLR, CR, DVN, DDS, DFS, ^DJT, ^DJI, D, DOV, DRQ, DTE, DUK, EXP, EBAY, EIX, EMR, WIRE, EOG, EFX, EL, RE, EXPD, FOE, FE, FLS, IT, GE, GPN, GS, GPRO, GGG, GFF, GES, HNI, HOLX, HD, HUBG, JBHT, IDA, IEX, ITW, IBP, IVC, JBLU, KALU, KBH, KELYA, KSS, LHX, LEN, L, LOW, MHO, M, MRO, MCHX, MRTN, MDC, MDT, MLKN, MS, MLI, NBR, NTGR, NJR, NWL, NEE, NXGN, NKE, JWN, NWPX, NUS, OXY, OGE, ORI, OLN, ASGN, OTEX, OUT, OMI, OXM, PTEN, PYPL, PRFT, PLXS, POR, PEG, PHM, KWR, RL, RLI, RHI, ROK, ROG, ROST, RES, SAIA, SIGI, SLGN, SO, LUV, SWX, SXI, SCS, TXT, TKR, TOL, RIG, TG, TREX, UGI, VLO, VC, WRB, WSO, WERN, WU, WLK, WEX, WOLF, XLNX, IYM, IYC, IYE, ITB, IEO, ICF, IAT, IYZ, IYF, EWK, EWG, EIS, EWI, EZA, EWT, TUR, PXJ, PHO, MXI, XLY, XLF, XLI, XLB, VHT, VIS, VAW. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

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The following table shows where Fibonacci retrace values of the day’s high-low range are plus pivot points, calculated on the Dow industrials, 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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© 2022 ThePatternSite.com    Metric   Value   Diff   Close (within 10% of the high-low range for the day)? 
 Monthly S2   33,084.48      
 Monthly S1   34,834.77   1,750.29   
 Weekly S2   35,681.15   846.38   
 Monthly Pivot   35,757.27   76.12   
 Daily S2   36,126.41   369.14   
 Weekly S1   36,133.10   6.70   Yes! The Weekly S1 is close to the Daily S2.
 Low   36,246.45   113.35   
 Open   36,321.59   75.14   
 Daily S1   36,355.73   34.14   Yes! The Daily S1 is close to the Open.
 61.8% Down from Intraday High   36,379.91   24.18   Yes! The 61.8% Down from Intraday High is close to the Daily S1.
 Weekly Pivot   36,406.44   26.53   Yes! The Weekly Pivot is close to the 61.8% Down from Intraday High.
 50% Down from Intraday High   36,421.14   14.70   Yes! The 50% Down from Intraday High is close to the Weekly Pivot.
 38.2% Down from Intraday High   36,462.36   41.22   
 Daily Pivot   36,475.78   13.42   Yes! The Daily Pivot is close to the 38.2% Down from Intraday High.
 Close   36,585.06   109.28   
 High   36,595.82   10.76   Yes! The High is close to the Close.
 Daily R1   36,705.10   109.28   
 Daily R2   36,825.15   120.05   
 Weekly R1   36,858.39   33.25   Yes! The Weekly R1 is close to the Daily R2.
 Weekly R2   37,131.73   273.33   
 Monthly R1   37,507.56   375.83   
 Monthly R2   38,430.06   922.50   


Monday 1/3/22. 2022 Forecast

Here’s how the indices finished this year, dividends not included.

Indices Growth in 2021
Dow utilities 13.4%
Dow industrials 18.7%
Nasdaq composite 21.4%
S&P 500 index 26.9%
Dow transports 31.8%

Here’s the updated 2022 forecast, presented in slider format.

Based on sector performance from Fidelity, the best performing sectors for year-to-date performance as of 30 December 2021 were…
(The numbering is how they ranked a month ago.)

1. Energy (+47%)

4. Real estate (+42%)

2. Information technology (+34%)

3. Financials (+33%)

8. Health care (+25%)

7. Materials (+24%)

5. Consumer discretionary (+24%)

6. Communication services (+22%)

9. Industrials (+19%)

10. Consumer staples (+15%)

11. Utilities (+14%)

The folks at two firms polled by Fidelity weigh the sectors in this order, as of 12/23.

1. Information technology (IT)

3. Health care

2. Consumer discretionary

4. Financials

5. Communication services

6. Industrials

7. Consumer staples

9. Real estate

8. Energy

10. Materials

11. Utilities

Here’s how they rank the industries, but only the top 10 appear. One-year change, as of 12/30. The numbering is how they ranked a month ago.

3. Real estate management and development (75%)

4. Automobiles (+63%)

5. Distributors (+53%)

8. Construction materials (+52%)

2. Semiconductors & Semi equipment (+52%)

1. Construction and engineering (+51%)

7. Oil, gas and consumable fuels (+51%)

New. Communications equipment (+49%)

9. Interactive media & Services (+48%)

New. Building products (+46%)

The Indices…

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.

Monday: Up 351.82 points.

Tuesday: Up 95.83 points.

Wednesday: Up 90.42 points.

Thursday: Down 90.55 points.

Friday: Down 59.78 points.

For the Week…

The Dow industrials were up 387.74 points or 1.1%.

The Nasdaq composite was down 8.4 points or 0.1%.

The S&P 500 index was up 40.39 points or 0.9%.

For the Year…

Dow Industrials

     Closed at 36,338, up 18.7%.

     0.9% down from the high of 36,679.77 on 12/30/2021.

     21.7% up from the low of 29,856.30 on 01/29/2021.

Nasdaq

     Closed at 15,645, up 21.4%.

     3.5% down from the high of 16,212.23 on 11/22/2021.

     26.2% up from the low of 12,397.05 on 03/05/2021.

S&P 500

     Closed at 4,766, up 26.9%.

     0.9% down from the high of 4,808.93 on 12/30/2021.

     30.1% up from the low of 3,662.71 on 01/04/2021.

$ $ $

Here’s a symbol list of 158 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
ANF, AEIS, AFL, APA, AAPL, ADM, ARW, AIZ, AGO, AVNT, AVA, AZTA, BLL, BAX, BECN, BIG, BA, BAH, BRC, BMY, BG, CBT, CE, CENX, CHS, CSCO, CLF, CLX, CNO, CGNX, CL, ED, CAG, CLR, CR, CCK, DVN, DDS, ^DJT, ^DJI, DUK, EMN, EBAY, EOG, RE, EZPW, FFIV, FLS, FTNT, GD, GE, GIS, GNW, GL, GES, THG, HLIT, HAYN, HQY, HSY, HON, DHI, INTC, JAZZ, JNJ, K, KELYA, KMT, KSS, LEG, LEN, LNC, LMT, LOW, MHO, M, MANH, MAN, MRO, MCHX, MRTN, MDC, MDT, MRK, MGEE, NXGN, NKE, JWN, NOC, NWPX, OXY, OMCL, ASGN, OTEX, OUT, OXM, PKG, PRFT, PCG, PPG, PFG, PGR, PEG, KWR, ROG, ROST, ^GSPC, SAIA, SHW, SO, SCCO, LUV, SXI, SNPS, TER, TKR, TREX, UNM, VLO, VC, WSO, WERN, WU, WLK, WEX, WOLF, XLNX, IYK, IEO, IEZ, IHE, DDM, EWA, EWM, EWS, EWY, EWT, TUR, IXN, SSO, XLP, GLD, XHB, XLB, SPY, XLK, UNG, VHT, VAW. Clink 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.

This Week Last Week
1. Trucking/Transp. Leasing 1. Trucking/Transp. Leasing
2. Retail Building Supply 2. Semiconductor Cap Equip.
3. Semiconductor Cap Equip. 3. Retail Building Supply
4. Cement and Aggregates 4. Semiconductor
5. Semiconductor 5. Cement and Aggregates
6. Precision Instrument 6. Precision Instrument
7. Natural Gas (Diversified) 7. Retail Store
8. Retail Store 8. IT Services
9. Homebuilding 9. Natural Gas (Diversified)
10. Human Resources 10. Human Resources
Best Performing Above Worst Performing Below
50. Natural Gas (Distributor) 50. Natural Gas (Distributor)
51. Aerospace/Defense 51. Aerospace/Defense
52. Investment Co. (Foreign) 52. Investment Co. (Foreign)
53. Air Transport 53. Air Transport
54. Biotechnology 54. Biotechnology
55. Financial Services 55. Healthcare Information
56. Healthcare Information 56. Financial Services
57. Apparel 57. Apparel
58. Retail (Special Lines) 58. Retail (Special Lines)
59. Short ETFs 59. Short ETFs
60. Oilfield Svcs/Equipment 60. Oilfield Svcs/Equipment

— Thomas Bulkowski

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Blog: August 2022 As of 08/04/2022   Indus: 32,727 -85.68 -0.3%     Trans: 14,479 +52.13 +0.4%     Utils: 1,022 -4.12 -0.4%   ...

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