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Tuesday, February 16, 2016

US - S&P 500 - Triple Screen 'Technical Analysis' - Double Bottom Drama - Week 3 of February 2016.










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


Patterns:.


  • Bulls hold the fort with a double bottom #D1.

Support & Resistance:

  • Index was resisted exactly at the '23.6% Fibonacci retrace from the ATH to the 2011 (orange) low' #W1.. Support came near the Day channel Bottom equaling an earlier bottom #D1.
Moving Averages:  
    • The 5 EMA on the Day Screen is crossed bearishly below the 13 SMA on all screens. 
    Indicators:
    • RSI 13, at divergence to the price, is almost at the over sold  #W2.  


    Wrap:
    Index closes weak, below support, but after bouncing off a double bottom #D1.




    Looking forward into this Week:

    Patterns:
    • 'Opening Black Marubozu' (Study Links herehere or elsewhere) is active on the Long Term Chart #M1.
    • 'Double Bottom' Chart pattern (Study Links herehere or elsewhere) is active on the Day Screen #D1.
    Support & Resistance: 
    • '23.6% Fibonacci retrace from the ATH to the 2008 (blue) low' #M1, is the next major support. The MVWAP34 on the Day Charts is  likely resistance #D1,
    Moving Averages:
    • Death Cross (50 & 200 SMA), is on the Day Screen #D1.
    Indicators:
    • TSI on the Month Screen. descends from the 50% towards the 38.2% Fibonacci retrace #M2.


    Wrap:

    Bulls below the 
    '23.6% Fibonacci retrace from the ATH to the March 2011 (orange) low', seek an up move after bouncing off the double bottom
     #W1.

    Bears look to enforce the down trend with drive down to the '23.6% Fibonacci retrace from the ATH to the 2008 (blue) low' #M1  with help from January's'Opening Black Marubozu' #M1.