| Chart Patterns $SPX $VXN $HUI $DAX |
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| Wednesday, April 18, 2007 |
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The S&P 500 Large Cap Index (SPX)
On the daily chart the SPX is in a pullback to it's uptrend line. It is still in a bullish trend reversal. However, the bullish trend is weak. My theory is that the daily looks like a bear flag but that it will reverse to go back up. I believe it will be a false bear flag. The best thing to do at this time is to sit on hands and do nothing. No trades for today. There is no sense of time on this chart. Right now we are right back to November levels. Do not try to short above $1245.00 Bias at this time remains neutral.
The Volatility Index - Nasdaq (VXN)
Has watching the VXN really helped you to trade this market? I doubt it. The VXN was at 18.00 when the Nasdaq was 300 points lower and it is now back to 17.93 whilst the market has gone much higher. The VXN is now back in it's trading channel. The 52 week high list is still strong. It is really difficult to read this because their such a large disconnect between world markets and the US markets.
Overseas Markets: German DAX Composite (DAX)
The overseas markets continue to rally and are on fire. The FTSE, DAX and the French CAC 40 Index (CAC) continue to out perform the US markets. The DAX is up 1.74% today and recovering from it's lows and it's recent pullback. There is no overlapping the uptrend line. Consequently, the bullish trend is still intact for the DAX.
The Gold Bugs Index - Amex (HUI)
The daily chart of the HUI is in a sideways bull flag. It recently hit new 52 week highs, and it looks to go higher. The HUI is very strong. In addition, Spot Silver just broke out of it's ascending triangle. There are laggards in this sector that you just have to avoid, such as GSS. If you stick with the leaders and the front runners, such as NEM, GG, ABX, and GLG, you will be fine. There are no hints that a correction is about to start. Dump your precious metal laggards now and get into larger cap golds.
$SPX
$VXN
$DAX
$HUI
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