Sharpening one’s pencil to the nub, attempting to calculate corporate earnings down to the gnat’s gonads, is a futile task.
The consensus miss on the recent earnings release from Chicago Bridge and Iron (CBI) is just one case in point.
A much better approach, one that’s been proved since the early 1900’s is the method used at this link.
Clicking on the S&P Sector Archive shows two recent charts of the S&P 500. Price action of the market itself identifies the next likely direction.
A century ago, the father of technical analysis (Wyckoff) stated it himself:
‘The most important thing in Wall Street is to know what will happen next.’
So now the S&P has reversed. That fact presents the next question … what will happen next?
The answers do not lay in earnings reports, interest rate pronouncements or unemployment numbers.
The answer to market direction is in the market itself.
For technical analysis on individual stocks, markets or indices, please visit our parent site at www.ten-trading.com