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Monday, December 14, 2015

US - S&P 500 - Triple Screen 'Technical Analysis' - Cup and Handle? - Week 3 of December 2015.











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


Patterns:
.
  • Index after a couple of Dojis, crashes to support #W1.
  • The combination of the Big 'W' and the new Day Channel #D1, make a neat 'Cup and handle' pattern.
Support & Resistance:
  • Index again took support at the Channel bottom of the Day Chart #D1 - it failed to make upward progress from previous week's Doji's close #D1.
Moving Averages:  
    • The 5 EMA and 13 SMA, on the Weekly Screen poised to cross bearishly or deflect Bullishly #W1.
    Indicators:
    • RSI 13, hesitates and falls at the oversold mark  #W2.  


    Wrap:
    Bears keep the index below the Week Channel bottom (orange) once again #W1.
    Desperate Bulls produce the 'Handle' of the 'Cup and Handle' pattern with the Day Channel action #W1.




    Looking forward into this Week:

    Patterns:
    • The 'W' pattern on the Day Chart is still in play (Study Links herehere or elsewhere) #D1.
    • A 'Cup and Handle' pattern is active on the charts #D1, #W1 & #M1 (Study Links herehere or elsewhere) so long as a Handle is viable on any relevant time frame.
    Support & Resistance: 
    • Day Channel bottom (pink) #D1 is support.  Index Resistance is the Week Channel's Bottom line (orange) #W1,
    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 touches the over bought line #D2.


    Wrap:

    Bulls hope for rewards from the big 'W' pattern #D1, with a breakout from the ATH #M1.

    Stoic Bears use the resistance at the Week Channel bottom (orange) #W1 to send the index down #D1 potentially forming a 'Cup and Handle Pattern'.