Intraday market notes & observations – April 26

 1:02pm ET: The hanging man formation (a bearish indicator) seen in yesterday’s charts of the silver ETFs (SLV, AGQ) didn’t lie–SLV is down 4.3% and the double long silver ETF, the AGQ, is off 7.7%. Note that leveraged ETF’s are great when they’re going your way but they can be quite unforgiving when they don’t.

FYI: A hanging man formation is a candlestick pattern consisting of a very short body with a much longer wick, typically at least twice the size of the body. If it occurs after a very long run-up (like we had in silver) and on heavy volume (see SLV chart below), it’s a sign that should be respected.

1:00pm ET: Intraday support/resistance
SPX 1339/1352
DTX 533/545
DJIA 12480/12660
Nasdaq 2830/2860
OEX 595.5/603.5
VIX 15/15.6
Trin range: 1.0 – 1.4 (neutral)
Average VWAPs: +61/-56 (more volume than yesterday; neutral stance)

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