Taking the analysis further
If you want to go deeper than the weekly charts — including how the levels translate into actual trade planning and risk management — you can follow the work Brian Shannon and I do at Alphatrends.
That’s where we walk through the same market structure in real time and apply the process to actual trade setups.
Show notes:
Markets saw their first meaningful bounce after several weeks of steady selling. While the move was broad-based, it remains a countertrend bounce, not a confirmed reversal.
Most indices are still below key moving averages and resistance levels. Participation improved slightly, but not enough to signal a durable low.
The focus remains the same: let the sequence develop. We need to see higher highs and higher lows above a rising 5-day moving average before getting more constructive.
Key Takeaways
First bounce after persistent selling
Broad, but still a countertrend move
No structural change (yet)
Indices remain below declining intermediate-term averages
Bounce stalled near resistance
Participation improved—but still weak
Not washed out before
Not strong enough now
Leadership remains limited
Most sectors bounced into resistance
Biotech (XBI) a notable exception
Commodities still strongest trend
Energy leading with extreme volatility
Crude remains dominant driver
Intermarket signals mixed
Bitcoin weak
Bonds stabilizing, not reversing
What to Watch
Higher highs + higher lows above a rising 5-day MA
Follow-through early next week vs. failure at resistance
Expansion in participation and leadership
Bottom Line
Respect the bounce—but don’t trust it yet
No urgency on the long side
The burden of proof remains on the buyers
References & Chart Resources
Chart School
https://www.trading-adventures.com/t/chart-school
The Bullish Percent Index – A Technician’s Perspective
Relative Strength – What Is It Really?
Take the analysis further
If you want to go beyond the weekly charts — including how the levels translate into real trade planning and risk management — you can follow the work Brian Shannon and I do at Alphatrends.
That’s where we review the markets in real time and walk through how the same principles are applied to actual trade setups.
Important: This content is provided for educational purposes only. If you’re reading this online, please review the full disclosure here.
