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Monday, January 4, 2016

US - S&P 500 - Triple Screen 'Technical Analysis' - Channel wars - Week 1 of January 2016.











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


Patterns:
.
  • The combination of the Big 'W' and the new Day Channel #D1, make a neat 'Cup and handle' pattern. Price oscillating in the Handle (or Day Channel) #D1 for the past couple of weeks.
Support & Resistance:
  • Index was in and about the 200 SMA, after returning near the Channel Top (Day Chart) #D1 - it  closed below all the MAs that we track across all three screens.
Moving Averages:  
    • The 5 EMA on the Daily Screen is crossed bullishly above the 13 SMA. 
    Indicators:
    • RSI 13, above the 50s  #W2.  


    Wrap:
    Bears again hold the index to a lower high, defending the Day Channel Top #D1.
    Bulls keep index in the 'Handle' of the 'Cup and Handle' pattern #D1.




    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 s possibility 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 for a Bull break through is the is the Day Channel's Top #D1,
    Moving Averages:
    • The 5 EMA on the Daily Screen will remain crossed bullishly above the 13 SMA, if the index closes above 2032 on the first trading day of 2016 #D1.
    Indicators:
    • STS in middle ground #D2.


    Wrap:

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

    Bears push for a breakdown at the handle or the Day Channel and life below 2000 #D1..