 The following is a presentation of TFNN. The Trader's Edge with Steve Rhodes. Toll free at 1-877-927-6648 or internationally at 727-873-7618. The Trader's Edge. Now, Steve Rhodes. Good afternoon from TFNN. Welcome to the June 19th, the terrific Tuesday edition of today's Trader's Edge show. I'm your host, Steve Perseverance Rhodes, who absolutely knows that each of us should always be pioneers of our future versus prisoners of our past. Hope everyone out there is having a great day. How about we have an extraordinary one? Yep, let's have an extraordinary day. And the easiest way to do that, it's to always remember that life is happening for us, not to us. That's right, when you and I make that one little two-by-four shift, it means we can find the gift in every set of circumstance that life is going to toss at us. Now today, you and I, we're going to go check on the circumstance of these markets. We're going to go figure out what the bulls and the bears, what the buyers and sellers are communicating. To you and I, just past one o'clock in the afternoon, I want you to know that I'm absolutely grateful for your presence here, but more important than that. During this next hour, I'm here to serve you. So feel free to pick up that phone. That's right, right now. Phone lines are open 877-927-6648. If you can't call in, we've got you covered. Let those fingers do the walking. Yep, send me an email, steve at tfnn.com inside that subject heading. Please put radio show question, of course, in our Tigers Denny, and every ping we'll do. So let's go ahead and get this show started on terrific Tuesday. Of course, this is Tiger, financial news network. I'm Steve Rhodes. Welcome to less show right now. Flat markets ahead of the Fed announcement. And don't expect that anything will really change until two-ish, two-thirty-ish, three-ish. We'll have to see what their first reaction, second reaction is. But at this stage, you've got flat markets. The Dow's out 12 points. No big deal. The S&P is off less than one point. The Nasdaq down 10. The Russell off one. The semi is off about two points. New York Stock Exchange up eight. As far as signals, some leading type of signal to let us know how the market's going to respond, there just aren't any that I can't identify. But what we can do is say, well, what are the conditions of the markets? What is it that would let us know at day's end what those conditions would mean depending on the type of candle that would form? And so we'll take a look at that. So the very first thing I would say, the easy tell today probably comes from the Spot Volatility Index. Of course, I said probably because I can't be 100% certain. But if we do take a look at the Spot Volatility Index, first, you're looking at, and when you look at this page here, you're looking at all the forward futures contracts June through January of 2020. That's at the kind of the center. Well, it's at the top panel, but towards the bottom. You've got the Spot Volatility Index. You've got its three month counterpart, six month counterpart, one year counterpart. Everything's nice and aligned out here as it should be. And the Spot Volatility Index, as of 109, is trading below its 50-day exponential moving average. Now that number right now, 1583, it's going to change by a couple of pennies or so as the Spot Bix moves up or down. But if price closes over the 50-day, right now we'll use the level of 1583. So 1584 is not exactly, yeah, it might be a close above it, but that's no conviction. But if price were to close above that, well, then the signal would be or should be that we're going to see some type of top, it's either some type of top of retracement, one or the other out there. Either way, above the 50-day exponential moving average, it could be a fairly significant retracement. You would ask the question, where would price likely retrace to? Well, here I would look at the ES, the ES mini contract. And in this case, and now that's a left-hand panel. Let me just expand it so you can see it. You're going to see daily and weekly profiles out here. The blue ones are the daily. Let me move the data box over in the right-hand side. The green ones are the weekly. I'd really take a look at the daily. What I would say is the range for a pullback to hold with nothing really wrong would be 2849, maybe to as high as 2862. In other words, the ES mini needs to close below 2849 to say that there is a trouble in River City now. At that stage, you're trading at 2921 right now. So that's quite a move to the downside. But that is where support is, or at least one level of support inside the ES mini. The second level of support is going to be Stevie's Green Line. That is at 2881. So now we've got 2881. We've got 2862 at the bottom of the weekly, 2849. So the first number to be watching, obviously 2821 out there. You'll see that at the 2938 level, that is a resistance zone. So we've got to take a look at both sides of the trade, especially when there's no tell out here. If, on the other hand, the ES mini closes over 2938, it'll make a run for its all-time highs. That was in May. Let me pull over the S&P cash contract out here. Let me, or the index, let me pull that over. Give me a moment just to change worksheets around. And so inside of the S&P, the number you're watching is going to be 2938. 2937.32. I might as well write that in here. 2937.32. If price closes above that. So what that number represents, there's a green solid line if you're watching this on Tiger TV that is on the chart. That was from, it looks like the trading day of May the 6th. That began what we refer to as a Tommy DeMark set up nine count. Nine consecutive closes where the close was lower than the close four bars earlier. It's a mouthful, but it's a worthwhile mouthful. What it does is it sets up, in essence, it is really where the breakdown began. If you think about running a race, maybe or you're just exercising before you really get into whatever that major exercise is, you're warming up a bit. But then after that warm-up, then you're into it. Well, in the case of the S&P 500, we didn't know at the time, but it was into it from that point forward and it takes out a ton of energy. And so we refer to these, or I refer to these, as breakdown and breakout levels. It's natural for price to pull back to a breakout level. That would be way down here, by the way, for the S&P 500 just so you know where that breakout level was. That was from the trading day by June the 4th, and that's at $27.62. That would be game if price closed below Stevie's Greenland at $28.68. But if price closed over $29.37, $32 today, you can anticipate that the S&P 500 is going to go test or make a new all-time high. And if the spot follow tonics closes below its 50-day expansion moving average today, that is a more likely outcome when we take a look at the S&P 500. Let's continue doing this out here. Let's take a look at the Dow. If we take a look at the Dow, the Dow's got the same breakdown, or A breakdown, but that happens to be at its high out here in May. And that level is $26.689.39. $26.689.39. That is the resistance level. And now if you close above that, would say you're going to make new all-time highs. We couldn't even really extend that new all-time high. We can take a look at where that might take price too, but I don't think we need to do that today. Right now what we're watching, by the way, on a pullback out here inside of the Dow, $25.985 is one number to pay attention to. The next number is going to be $26.1 and a quarter, but it's really $25.790, the bottom of its daily profile out here. But the top of the profile would be support because price is broken above that. So $26.126 is the number to be watching. I would love to tell you how the market is going to react. I'm positioned from a bullish standpoint, but what stops in place? Well, nor can you what the market is going to do. At 1.14 in the afternoon, the market is in bullish conditions, but I don't know is what it will look like at 4 p.m. today, but we'll be right back. The Taz Profile Scanner is the most revolutionary piece of trading software that you will ever try. Wouldn't you like to approach the markets with confidence? 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Steve Dahl and Tom O'Brien have just announced a special webinar on June 19 for all subscribers to the Taz Profile Scanner. Even Tom will break down the trade matrix, market breadth, heat grid, as well as the three-step process you can use with the Taz Profile Scanner to identify market movers and how to capitalize on that move. For all the details and to get started with the Taz Profile Scanner today, visit the front page of TFNN.com. With a 30-day money-back guarantee, you have nothing to risk. Go sign up today. We have a new and improved homepage with a much simpler navigation, whether you're watching Tiger TV live in high definition or just accessing your newsletter subscriptions. We even have new pricing in six months and yearly options. Check out the new TFNN.com now and experience all the upgrades. TFNN.com, educating investors. 7-6-1-8. Welcome back, folks. Again, flat markets out here. Nothing off by any significant percentage. The transports are the leader to the downside up a quarter percent, 25 points. That is really no big deal out here. So, you know, we spent the first segment of the show really taking a look at both the bullish and the bearish side of the market. I think that's the only thing we can do. There's no real tells that I can find out here. We know that resistance was hit in the Dow and the S&P 500. That's not the case inside the NDX100 as an example. So, if we take a look at the NDX100, here's what we know right now. It's made a retracement, a .786 retracement from the high back on April 25th to the low that was put in on June 3rd. Now, the .786 retracement, every Fibonacci retracement level, each of these levels can be areas where you begin to see a turn, .382. Well, we know that wasn't it. Price hit that level, by the way. Back on June 6th, the very next day, price gaps up, widest ranging bar, says I'm going to go to the .618. It does that. It closes right on it. On June 10th, price just covers in that area where yesterday it made it up to the next floor. So, here's what we do know. If the NDX100 responds positively to whatever the Fed announcement is, where is it going to go? It's going to go up to its next level, or what Tom refers to, and we all now refer to, we just have to pay them a royalty for it, is that 100% move of a move. That would be at the 7851 area. So, you've got, when we took a look at that first segment, we've got a test of the swing points for May inside the S&P and the Dow. They were rejected. We've got the NDX at the .786 retracement. You can make the case that this will go or can go. Either way, out there. If you take a look at the Russell 2000, traded out at 1548 right now, it made it yesterday. And this is the daily chart we're looking at. And again, its retracement is from the May 6th high. Down to the low out here was either June 3rd or May 31st out there. And you can see that yesterday's move went on to floor number two, the .618 retracement. So, where is price going to add to the upside if in fact that's how the market responds? Very simple. You can expect 1584. 58, the .786 retracement level out there. Now the interesting thing about the Russell 2000 is what? Oh, I don't have the weekly. But I do have the weekly equity futures contract. So, let me just put that up here. And if we take a look at this, what occurred this week, Monday and Tuesday from a weekly perspective, if the countertrend rally were to stop, it should have stopped at 1534.30. Now it's Tuesday or is it Wednesday? Today's Wednesday. That guy called the terrific Tuesday. I think it's Wednesday. Sorry, my days are all kind of scattered here. Scattered brain. I think it's, what is it? Yeah, it's Wednesday, June 19th. But it's a weekly time frame chart that we're looking at. And so it's really going to be about Friday, not about what it looks like on Wednesday. You see what I mean? So if the bullish conditions, so now we've done it, we have switched gears to the intermediate term time frame. And you can see from a weekly perspective here, we take a look at the Russell 2000. We're just chart patterns. This is not rocket science. Maybe the development of the tool included some rocket science. But once you have that done, it's not rocket science to read what the message of the markets is. We can see from the high back in September of 2018, any countertrend rally, the biggest countertrend rally took place in December, December 7th when price got up, tested that red line and rejected it and continued to move lower out there. Now this is not going to be a timing tool that's going to identify the top or the bottom, but it is going to be a tool to let you know when the market has shifted or the difference between a countertrend rally and a real rally. There's no doubt about that one. There is no doubt about that. You can see that when price here on a weekly basis, January 18th, got above Stevie's red line and there was a couple of pullbacks to test that level. By the way, there was a TD set up nine count pattern that did identify the top from the week of March 1st, 2019. But when you see a top, what it really means, what Stevie will suggest to you that it really means is that price is just going to go back and test support. Now for break support, then you've got to change and trend out here. And one level of support and the reason why we affectionately refer to this as Stevie's red line and green line out there is because it is such a key tool. Is it a moving average? Absolutely, positively not. So you can't emulate this tool by using some moving average. It just won't work out there. But you can see here, price did come back March 22nd. It tested it again on March 29th. And boom, that was the message intermediate term that the market was still bullish. So right now as we speak at 1.23 in the afternoon on Wednesday, I got the date right, March the 19th. It's in bullish set up territory. But you and I are not going to ignore the weekly chart. We're just going to pay more attention to it come the end of the week. So what does that mean? We closed on Friday below 1534-20. This was just a countertrend rally in the Russell 2000 and price very well may go back and test the TD support line. And that price point out here is 137580. 137580. So that's the downside piece of it. But again, it's a weekly chart. And so we won't really know whether, and that was the equity futures contract by the way. And look, we have the same conditions in the other equity futures contract. If we take a look at the Dow though, you did get a close above Stevie's green line for the last couple of weeks. So that is bullish out there. When you take a look at the Dow equity futures contract, but 26117 is the weekly number. Stevie's green line, that's the level to be watching. Price must stay above that level on a closing basis come Friday in order to suggest that the market continues to be bullish and wants to move higher. If you take a look at the NQ, very similar to the Russell 2000 right now, it's trading above the weekly 7557 Stevie's green line level out here. But if price closes below that, well, what it opens up the door for is 6575. That's where the breakout began on a daily basis. Oh, I'm sorry, on a weekly basis inside of the NQ out there. With regard to the EES mini, we take a look at its weekly timeframe. We take a look at the weekly timeframe. Price close above Stevie's green line for the last two weeks, and now including this third week out here. That's a signal that price wants to head back to its all time high. So the question is, who's telling us the truth? Is it the Dow and the EES mini? Or is it the NDX and the Russell 2000? And I wish I knew the answer to that question. I don't. I don't. A question that's coming in. Any reason to thank an intermediate term, S&P decline sets in bottom near, do come January as I see it. So a great question that was asked. And my take on that, I've got to open up this chart here. And see how quickly I can do this. I think I could do it relatively quickly. And that question was from John and the Tiger's Den. So John, the answer to your question, I would, what the heck? Oh, there we go. Okay, great. So now you've got it. So John's referring to Marty Armstrong's economic competence model timing arrays out here and that ECM cycle date, which may or may not, quite frankly, have something to do with the stock market. May or may not suggest that there would be a key cycle low in January. Well, there's no doubt about that. We could have told you that over the last 86 years, there's always a cycle low at the end of January. That's what this chart is telling us. We'll be right back. I'm certain you are or strive to be one of the best of the best at everything you do in life. It's the most common trait that we Tigers and Tigers share. If you're looking to become the best of the best when it comes to managing your money, let me teach you to do what most wealth managers tell you can't be done, which is how to time the markets. I'm Steve Rhodes, author of Mastering Probability and for the last 12 months, Timer Digest has been tracking my newsletter signals which have earned me the ranking as their number one market timer in the nation for the S&P 500 for the last 12, 6 and 3 months. Timer Digest also ranks me as the number one market timer for gold as well. The fact is markets can be timed and I'll teach you the exact set of tools that I use that has transformed me into one of the best at what I do. 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David has been delivering solid recommendations for his subscribers recently and if you'd like to see the type of newsletter he delivers every morning then visit the front page of TFNN and you'll find the path of least resistance under Trading Newsletters. For all the details for a free trial today log on to TFNN.com now. TFNN is excited about our new software charting program The Art of Timing the Trade Chart. In collaboration with Tom O'Brien and using his best selling book The Art of Timing the Trade Your Ultimate Trading Mastery System David White has programmed an outstanding piece of software that will complement any trader's methodology. Using this first of its kind program The Art of Timing the Trade Chart allows you to scan thousands of stocks for free formation setups including guardleys, ABCs, butterflies and much more. The Art of Timing the Trade Chart is designed to help you when scouring the markets for stocks just beginning to form the trading patterns that many investors spend days, weeks or even months searching to find. And right now we're offering licenses available at only $79 a month. We are so confident that you're going to love this new charting software that will even give you a 30 day unconditional money back guarantee. Get your copy of The Art of Timing the Trade Chart today by visiting tfnn.com This segment is brought to you by Think or Swim. For more information just click the Think or Swim banner on the front page of tfnn.com Welcome back folks. So before we were going into that break we were taking a look at the 86 year seasonal cycle for the Dow. If I was going to identify key date and when I use the word date I'm not really referring to an exact date out here. I'm using a general timeframe. Those dates would be the end of January. On my chart it shows January 30. Typically the market, the Santa Claus rally so to speak, which by the way begins in October. At least that's the best time for the rally, typically in mid October out there. But what you're really looking for some type of pattern to occur at or near these date ranges out there. I would be using the end of January. I would be using the middle of May. I would be using the end of June middle of June. I would be using the middle to end of July. And then I would be using the mid October timeframe out there. So we're in this and if you're watching us on Tiger TV we're in this real consolidation-ish type of zone that is out here. So do I think that the market is going to move down through October? No. Or the market is going to move down through January? No. I don't see that just yet. Instead what we know is that the Dow and here I've got the Dow equity futures contract, we're trading within a consolidation band. We have done this before. Markets do this. This market will resolve this consolidation band to the upside as it did in October. We have done this before. We have done this before. We have done this before near the top of that consolidation. Even moving above the high from January won't exactly float my skirt up. You'd have to, and I've just drawn a trend line, a simple trend line from the January 2018 to the October 2018 level. And I would need to see price close above that, the Dow equity futures contract. Otherwise, we're just in this consolidation pattern, which means price could easily, at some point in time, pull back into the 23 207 range, even below that, because we can use a simple trend line from the August 2015 low, and just simply go ahead and as a touch point use December of 2018 out here. And so price could easily pull back into that area. So as we said yesterday, we're closer to a top versus a breakout in my opinion. And we just need to be on top patrol out here. Unfortunately, we don't have the patterns associated with a top at this stage and at least on the daily time frame charts. I've got some on some intraday time frames, but we really need some type of confirmation from the daily time frame. So John, I hope that at least helps you out with regard to my thinking as I take a look at the charts and chart formations out there. You also ping me about taking a look at gold, and you and I have discussed this, and in essence you were showing basically this chart here, or a version of it. And this is the, we looked at this folks yesterday, and the question is what is gold doing now? This is a monthly time frame chart for gold. And with this horizontal and dash yellow lines at the 1362 to 1392 level, what they show you is a significant resistance going back for the last nearly six years out here. Is price going to bust through it this time? I don't know. I don't think so, but I don't know if it does break above it and stays above it. And what I mean by that is typically you break above resistance, you come back, test to reject it, and then you're off to the upside, and then you could use a consolidating measured move type pattern. There'd be a number of different ways for us to go ahead and do that. But at this stage here, we know that resistance is nearby. Now, unlike the equity futures markets on a daily basis, the gold contract has generated a potential topping signal. So today's action, John, will really be key and everybody else sits out there. What do I mean? Look, we had price moving higher, doing less relative energy. You can see that out here on this trading day of June the I believe it's June the 14th. I've had several people write in and say Steve wasn't that a shooting star. So let me set this record straight. No. It is not a shooting star. You really do, if you're using Japanese candlesticks to help interpret what the market is doing, you really want to make sure that you know your candlesticks. In this case here, it was too large of a wick. Too large of a wick at the bottom. That is not what a shooting star looks like. Instead, you'll find shooting stars out here and much like a hammer. Instead, what you're going to see is very little wick at the bottom, if any. But you can see a small amount. But that is just simply too much wick. This candle means absolutely nothing. Nothing. Zero. Nada from an interpretation of a Japanese candlestick standpoint. However, as we've seen price trade out here, you can see that yesterday was a bull sash candle. By the way, bull sash candle does not need to be non-directional. So it doesn't matter if a shooting star can only occur if the market's moving higher and a hammer, only if the market is moving lower. A bull sash and a bear sash, that is not the case. They are not directionally specific out here. Nonetheless, they are either bullish or bearish candles out here. So what's really interesting about this potential pattern, it's only a potential pattern. This is like the weatherman saying it may rain out here. So Steve is saying it may rain. Now, I would not have told you that on the trading day of June 7th that the price of the bull sash was going to move higher. Well, it did that. We also know we've got this evening star formation. It's three river evening star formation way back in February. And price is not closed over that. So that's also a key resistance level. Now, if today we get a the way that the price of gold reacts out here. If we get some type of bearish reversal signal and you see a close below Stevie's green line, which is 1340 90 out here. Oddly enough. Then you get a message that gold is going to go ahead and pull back and it's made a top which comes back to this chart that says hey gold could easily pull back to that trend line. That trend line, by the way is coming off of the December 15th it's monthly chart low and the next tags the August 2018 area and that price point would be somewhere in the 1204 level. Now look before it gets down there I'm making a project and it's going to hit 1204. No, but I'm saying that that's where price could easily pull back to in gold. We must remember that gold is basically virtually to a certain extent been trading sideways for nearly six years out there and what is it that makes anyone think that conditions have changed because they haven't they can't change. They can't change until they do close above this resistance area between 1362 and 1392. If we take a look at is there any tell in the marketplace with regard to gold there really isn't it's trading lower in euros in terms of yen in terms of pounds but no levels of no no real bearish reversals other than in pounds exist as we speak right now. Gold does have support at the top of its daily profile 1345 so if you get a close below that plus TV's 1340 huge signal out there to you that would say price going to pull back to 1330 the 1323 that happens to be the bottom and center of the box out there and then below that then you can start exploring the larger longer term trend lines out there as to where price might head to so that's what I see when I take a look at Goldilocks the daily the monthly chart out there with regard to bonds the same kind of thing out here if you take a look at bonds we'll take a look at this I suppose we get back from this break I'll get rid of this butterfly sell pattern because that's not the one we're watching today we're watching one of those same thing like in gold the roads momentum topping indicator which right now you've got a confirmation but I don't care what it says at 138 I want to know what it says when the market closes today we'll be right back we'll be right back we'll be right back TFNN 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question out there and what Jeff is referring to if we take a look at but first Jeff I'm going to tell you that I do not see an a to b equal CD to the upside so this is now this is the a to b equal CD pattern is somewhat subjective out here the a point the b point the c point those are fairly easy to discriminate but here's what I mean and I'll show you to you because you'll see it from a percentage standpoint so the a point on here I think that you are referring to would be the low from June 3rd the b point would be the high from June 11 and the retracement the only retracement the lowest low after that candle session Jeff would be the trading day of June 12th and if you take a look at the retracement there you'll see it it's the exact retracement on my system it's nineteen point five eight percent so for me for my work for the a to b equal CD I need to see at least a point three a to retracement or something at least very close to a point three a to retracement not fifty percent of that number or something like that this is nineteen percent it's a little bit more than fifty percent but so to me that's not enough of retracement to go ahead and say that it's automatic that the spies are going to go ahead and complete the a to b equal CD and get up to three oh six if this is the retracement which it could be Jeff so I could be wrong here I'm just saying from my work and the way I do a to b equal CDs this doesn't qualify because if it's a qualify it's not three oh six price where price had to it's had to three oh three eleven or three seventeen out there that would be thirty one hundred or thirty one seventy out there give or take so I don't see that what I do see and we go look at the cues to for you what we do see is we do see that price certainly is trading into a swing point that was the May first swing point which had seventy one million shares yesterday with eighty five million shares all that means in a closed inside there is that price should go test the top of that but remember when we put up the cash in to see it trades different than the ETF because of distributions dividends but what we had yesterday was this in the SPX and that is the testing of the swing point that was at twenty nine twenty three and a rejection of that what that means that price should at least get back up and test twenty nine twenty three thirty six not that it will go up in test the twenty nine fifty four level out there if we look at the cues I assume we're going to see the same thing out here but let's go make sure of that so let's take the eight point very easy to identify I would assume Jeff you were using that June third low and for the B point you would use the high on June eleven but the lowest low that took place out here let me see was it June twelve one eighty two no it was one eighty one ninety four on June fourteenth so what percentage is that twenty one point four five again I'm looking for point three eight two you need some you know the retracement here's here's a here's a more valid A to B equal CD at least from Stevie's work and the year's worth of work on this so your eight point out here this to the downside is coming back to it looks like April twenty nine this is in the cues one ninety one thirty two is at the high well we got it twice out here and that's all I'm going to use the trading day of May first that's my eight point my B point May then my C point out here May sixteen there you get a sixty percent retracement that's the type of retracement that really would set up that A to B equal CD pattern something less than a point three eight two Jeff it's just simply suspect and that's that's how Stevie trades the A to B equal CD pattern out there so thanks for the question I hope that helps you out no other questions very quiet out there very much like the market so I would say the emotion of the listeners is very much like the market so let's spend some time taking a look at what taking a look at some individual stocks let's go see what's moving to the downside see what issues there out here so let's go start with AZO auto zone auto zone is down about fifteen dollars and change one point four percent out here let's go put it on our three different time frame see where price is trading in relationship to those market profiles I think there's going to be a market profile workshop this evening which I would recommend that everybody go to the price inside of auto zone above the daily weekly and monthly and quarterly top of those profiles so that looks pretty good you're trading out at eleven ten that right didn't realize that auto zone was an eleven hundred dollar instrument no kidding holy shnikes out here okay well it is so take a look at auto zone here's what it's doing right now it's pulling back in testing steve's red line your price eleven oh nine brought eleven eleven is steve is red line so close below that would say that auto zone could pull back to its breakout level that took place on June the fourth that number is ten thirty one thirty nine out there prices moving higher doing less relative energy so the pullback inside auto zone should come back to the ten sixty four to the ten thirty one level that's what I see as we look at it what else is moving and grooving to the downside you got a Riley automotive do we need to look at another automotive no we don't but google let's go see what's going on with google maybe there's some kind of tell their g double oh g out here see what it's doing it's trading right now ten ninety six I straight in bubbles daily it's traded into and so far has rejected the top of its monthly profile and is below the weekly so we got a mixed message out here with regard to the Googler however what's not mixed is the TD set up nine count the potential nine count now this will confirm a nine count if Google today closes above ten eighty eight seventy seven your ten ninety six then you'll get a nine count that's a topping signal not would say okay Google should at least come back to support remember our first level support in this case here is going to go ahead and be Stevie's red line ten seventy three because that line is red it tells us that we have a price oscillator below zero your price closed below ten seventy three eleven then we have a falling price oscillator below zero and a Stevie likes to say nothing more bearish than a failed bullish pattern out here in closing bullets bullish even though it has a topping signal but if you break through support it could be Sayonara baby out there so you've got the TD set up nine count be careful if you are inside of the googly one that is out there maybe let's do this here instead of looking at individual stocks why don't we go look at the sectors inside the S&P 500 that sounds like a good idea doesn't it because what are the sectors inside the S&P 500 communicating to you and I as we speak right now one forty nine in the afternoon let's start with the number one weighted sector of course that would be the XLK any type of bearish pattern or signal out here and the answer is no there isn't it's got resistance up here there's your TD set up a trend line that's up at the seventy eight thirty six area so watch that if price is closed above that the XLK going back to its highs below seventy six oh nine a further retracement that would be Stevie's green line but are we seeing a topping condition out here we see resistance we see this little shooting star there's what your shooting star looks like out here no wick to the downside you can have a small wick you just can't have a big lower shadow or wick as they referred to them so yeah there's resistance just been trading sideways but it has not broken through support that is the XLK how about the health sector out here before we go to this hard break healthcare sector looks mighty fine to me there's not anything bearish about XLV I believe that's number two waiting inside the S&P 500 you're right since nineteen eighty four basil Chapman has been using the Chapman wave methodology to advise traders of his expert market opinion well originally hand drawing charts from the late nineteen seventies into the nineteen eighties basil noticed that prices under most circumstances virtually always had a certain number of legs to the upside before declining sharply later basil found that computer software which included the standard market technical indicators enhanced the degree of accuracy and calling price turns as well as market trend calls thus was born the Chapman wave sequence using the Chapman wave methodology along with other indicators basil Chapman advises his subscribers of his expert market opinion each market day with his opening call newsletter right now you can get a two week free trial to the opening call Basil's daily trading newsletter by visiting the front page of TFNN.com cancel it anytime during that trial and pay absolutely nothing get your two week free trial to Basil's newsletter the opening 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a primal lifestyle buy it today for just eighty nine dollars click on the primal edge banner on the front page of TFNN.com this is David White stay tuned because coming up next is the power trading hour right here on TFNN let's go to Ron and Denver Ron thanks for calling thanks for holding how are you today you're taking the call I just had a question a couple days ago I bought a few puts on VDOT green dot about 50 puts in the expire Friday so I'm just looking for a short term and I was thinking I was thinking this thing might get we get to 46 I just wondered what your thoughts were so 46 I wanted to ask about beyond me when would be a good time to look at it for a put so let's take a look at green dot first GDOT folks is a ticker symbol and Ron the best way that I can answer that question is prices nearing support now support here based on its daily market profiles would be 4651 to 4696 you're trading at 4742 you've been down to a low 4721 today you may have gotten the meat off of this bone out of this now this is a bullish structured box doesn't guarantee that support will hold but it does tell you that you've got buyers lined up inside of green dot between 4651 and 4696 out there if close below that 4651 well then you're likely to go test that high volume low from May the 9th 4167 so those are the parameters that you're dealing with out there you're trading right down towards a real key level of support out there with regard to beyond meat out there BY ND I believe is the ticker symbol out here there's such a lack of trading information in other words it's only been trading since May 2nd my tools just aren't going to do us a whole lot of good the only thing that I can say when we take a look at beyond meat out here is prices stretch it's moving higher doing less relative energy out there but we don't have a bearish reversal signal if we take a look at our wave count from the very opening day of trading you're in wave number 6 that's letter F maybe at wave number 7 run that means it's got to take out yesterday's high maybe that's a place to consider beyond meat so good to talk to you sorry we've got to run because it's the end of the show best of luck with you in those trades folks stay tuned David whites up next he's going to update us on exactly what the Fed has done with the markets are doing take care