Learning from last Week: (click here for the previous post)
Patterns:
- November and December 2014 candles on Month screen #M1, form a 'Bearish Engulfing' with a close at 8283 #M1.
- Bulls start, 1 Jan 2015, with a close at 8284, and preempt a 'three outside down' for now.
- Previous week's Candle on the Medium Term Screen i.e. the 'High Wave' produces a Bullish Continuation for the Index #W1.
- Index finds support, at the January Pivot.
- Day Channel's blue mid-line, was again the resistance zone.
Moving Averages:
- The critical 5 EMA and 13 SMA on the EOW, makes a Bullish deflection earlier in the week, keeping above 8151, giving the Bulls a run up #D1.
Indicators:
- MACD and its MA cross bullishly below the zero line - histogram ticks above zero line #D2.
- STS makes a bounce near the over bought line #W2.
Wrap:
Bulls regain full control of the Medium Term while Bears fail to take advantage of the Bearish Engulfing for now #M1.
Looking Forward into this Week:
Patterns:
- 'Bearish Engulfing' on the Monthly Charts becomes a 'Three Outside Down', if January Closes below 8283 (Study Links here, here or elsewhere) #M1.
- Bulls start 2015 with a close at 8284 followed by a 100+ point rally the next day. Bears have all of January 2015 to get index below 8283 #M1.
Support & Resistance:
- Index supports that the Bears want to break below this week, are the Weekly 50 SMA (8317) and Wall for January (8174) #M1.
- Resistances that the Bulls want to get above, are the Day Channel's blue mid-line #D1, and the previous All Time High (ATH).
Moving Averages:
Indicators:
- STS, moving below the overbought, would pause the 3+ quarter long Bull domination of the Medium and Long Term Screens #W2.
Wrap :
Staying above 8283, Bulls intend to deny the Bears the advantage, or a Long Term 'Three Outside Down' #W1.Bears see life below 8212, with a shot at getting below the October'14 low on the EOD #D1.
