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Monday, October 26, 2015

US - S&P 500 - Triple Screen 'Technical Analysis' - 'W' Confluence. - Week 4 of October 2015.













Learning from last Week:  (click here for the previous post)


Patterns:
  • 'W' pattern on the EOD chart completes #D1, making a confluence with the Pullback to the Medium Term Channel's Bottom line (orange) #W1 and the EOD channel's Top (pink) #D1.
Support & Resistance:
  • Index took support at the 13 SMA on the Day Chart all week #D1 - it was resisted exactly at the confluence of the Day Channel's top and Week Channel's bottom #D1, #W1.
Moving Averages:  
    • The 5 EMA and 13 SMA, on all the screens are Crossed Bearishly #M1.
    Indicators:
    • RSI 13, after lift off, from the oversold line, almost at the 50% mark #W2.  


    Wrap:
    Bulls after hammering their way to above the 2K mark, dominate the short and medium term screens.
    Bears stop the index at the Confluence of Channels and the 'W' pattern, as above #D1.




    Looking forward into this Week:

    Patterns:
    • Confluence of a) the pullback to Channel Bottom (Study Links herehere or elsewhere) #W1, b) The 'W' on the Day Chart are active (Study Links herehere or elsewhere) #D1, along with c) the Day Channel's Top #D1 - worthy of study. 
    Support & Resistance: 
    • 200 SMA on the day chart is the support that Bulls want to stay above. Index has resistance at the 'Confluence point' studied above.
    Moving Averages:
    • Death Cross on the EOD, is active as long as the 50 SMA and the 200 SMA stay crossed Bearishly (Study Links herehere or elsewhere) #D1,
    Indicators:
    • STS is Oversold #W2.


    Wrap:

    Bulls now seek the rewards of the big 'W' pattern #D1.
    Bears look to defend the 'Confluence Point' as above and get back into the game #M1.