Monday, January 6, 2014

S&P 500 - Triple Screen 'Technical Analysis' - New Year Reds - Week 2 of January 2014.

S&P 500 - End of  Month Chart (EOM) - Channel analyzing Data from mid 2009, onward - as on 03 Jan'14

S&P 500 - End of  Week Chart (EOW) - Channel analyzing Data from Aug'2011 onward - as on 03 Jan'14

S&P 500 - End of  Day Chart (EOD) -  Channel analyzing Data from Oct'2013, onward - as on 03 Jan'14

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


  • Bullish '3 Inside up' #M1, on the Long Term Charts kept November and December candles green, with a new ATH.
  • A Bearish Harami is formed by the last two candles on the Medium Term Charts #W1.
Support & Resistance:
  • Index slides well below the 5 EMA on the EOD all of the new year, enough to paint the week red  #D1, #W1. 
  • EOW channel top resistance (orange line) violated, but does hold up the Bulls #W1.
Moving Averages:  
  • The Month candle stayed above the 5 EMA showing the long term strength of the Bulls #M1.
  • Bulls close above the 5 EMA on the EOW to demonstrate that they ended the week strong #W1.
  • RSI 13, stays in the overbought #W2.
  • Month Chart Oscillator remains below the overbought, after the August'13 Close #M2.

Bulls start the year on a red note but retain strength - Bears manage to hold fort at the EOW channel top #D1, #W1..

Looking forward into this Week:

  • Long Term Chart's Bullish 'Three Inside up' (Study link herehere or elsewhere) #M1 - still active.
  • Three Inside Down (Study links here, here or elsewhere), can trigger on Medium Term Screen, if this week's close is below 1831 #W1. 
Support & Resistance:
  • 200 SMA and EOD channel Bottom on the Short Term Chart are Support for the Bulls.
  • 'All Time High' Line and the Channel Top #W1 are resistances.
Moving Averages:
  • Bears need to get below the 5 EMA on the EOW to get a life #W1.
  • Bulls need to keep the 5 EMA on the EOD above the 13 SMA to keep their life #D1.
  • Stochastic 34 3 4 in the overbought zone, works for the Bulls #D1.
  • Oscillator popping into the over-bought this month, can set the Bulls free #M1.  

Bears trust the EOW channel top #W1 holds the Bulls - Bulls seek to get green back into 2014 candles (Day, Week & Month).