Stock Market Technical Analysis – Tech It Easy (thru August 29, 2014)
Stock market technical analysis is all you need to know, complete hogwash or somewhere in between. It depends on who you ask. If you find it interesting, you’ll probably like reading this weekly feature.
NOTE: You may be reading an outdated article. Please visit my latest stock market technical analysis summary of the S&P 500 for more.
I used to have screenshots of the various stock market technical analysis assessments I present below, as well as a bit more analysis for each one. In order to save time, I will not be doing the screenshots and will abbreviate some of the text for each analysis as well. The last time I did a comprehensive analysis can be foundhere, in case you want to see what it looked like.
The next few paragraphs are my standard intro to stock market technical analysis – you can skip down to the table (or click “continue reading”) if you read this feature regularly:
Many people who trade in the markets believe that there are patterns that can generally lead to profitable trades. By analyzing stock charts that show the change in price along with the volume (how many shares were traded), “technical analysts” believe they have an edge and can time their trades profitably. There is significant controversy over this subject, however. Others say that, unless you have some information that no one else does, basically you can never beat “the market” because everything is already baked into the current price of a stock.
Nevertheless, supporters of stock market technical analysis are everywhere, and the tools for their trade can be found throughout bookstores and the Internet. I like to follow some websites that do some of the work automatically and provide a snapshot opinion of whether a particular stock is considered “bullish” (going to go up in price), “bearish” (going to go down in price) or “neutral” (stay about the same price).
For simplicity, I’d like to start by showing you a snapshot of what several stock market technical analysis websites suggest about the exchange traded fund (ETF) with the ticker symbol of SPY. This fund is supposed to go up and down the same as the S&P 500 index does. And many people consider the S&P 500 index (a measure of the price of the 500 largest companies that trade in the U.S.) to be an accurate gauge of where “the market” stands.
For each of the sources below, where I have a choice, I will use a measure that attempts to predict the future direction of SPY or S&P 500 in the next 3 months.
S&P 500 Technical Analysis Summary
Source: Barchart.com | BULLISH
Quick ‘n Easy
Barchart.com uses three analyses to predict the direction of SPY over the next three months or so. Looking at the average value and strength of these three signals, we can conclude that BarChart.com thinks that the price of SPY will rise over the next three months.
Easy Notes: BarChart.com says that the price of SPY will probably rise over the next three months. This is the 15th consecutive “bullish” assessment after 10 consecutive weeks at a “neutral” rating. All of three signals are at “buy,” and only one is a weak signal. Unfortunately, two of three signals are headed in the wrong direction (the right direction would mean “buy” signals are strengthening and “sell” signals are weakening). Overall, this is clearly a bullish assessment.