Trader Mike

I think it’s safe to say that the bulls reclaimed the upper hand today. They responded to what the Federal Reserve had to say by pushing the indices above many important technical levels. It will be interesting to see how the market acts as it gets into the gas left from the big drop on the morning of February 27th.

The Nasdaq confirmed a W-bottom yesterday by closing above the March 9th high. It got a nice follow-through today and took out its 50-day moving average. It’s becoming short-term overbought as it approaches late February gap down.

I’m showing SPY instead of $SPX in order to show the February 27th gap. The S&P confirmed a W-bottom today and also closed above its 50-day moving average.

Barrett wanted a chart of MDRX:

Forming a triple bottom with lower highs after each bottom…what do you think? I am kind of new at this technical analysis.

I do see that potential triple bottom. But I think that, similar to a double bottom, it won’t be confirmed until the stock trades (closes?) above mid-point(s).

What really jumps out at me about this stock is that it’s just going sideways. If I really wanted to play it I’d wait until it broke out of the top of its range. Besides the sideways action the fact that it’s under its 50-day moving average and its downward sloping September - October trendline would certainly keep me from buying the …