ARM Watch

The auto component maker ArvinMeritor Inc. (ARM) shows a parabolic sar bull signal that is aligned with an uptrend that has been in place since March 2009.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
ARM $16.22

At 2:14 p.m. Eastern

ARM, in line with the rest of the market, corrected during the first half of May, with its lowest close around 14% below the highest high.

Today's move up pushed the stock to a new high, $16.43, or 4¢ above the prior high of $16.39.

The price has since pulled back to below the $16.39 level, and a cautious strategy would be to wait for a close above that level before opening a bull position.

The present rise puts the price in an area of congestion.

Reversal Levels

• $18.11, +11.7%
• $17.40, +7.3%
• $16.60, +2.3%
• $16.43, +1.3%
• $16.39, +1.1%
• $16.22 <==You are here.
  
• $12.46, -23.2%

A push above $16.60 would be compelling evidence that the uptrend has resumed.

---

The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.

---

Skynet Panic of May 6 
Panic Looks Like This 
Skynet Panic Poisons Technical Tools

Abbreviations: psar - Parabolic Stop and Reverse adx - Average Directional Index pps - Person's Proprietary Signal ma20 - 20-day moving average macd - Moving Average Convergence-Divergence mfi - Money Flow Index sto - Fast Stochastic  

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader.