Learning from last Week: (click here for the previous post)
Patterns:
- November and December 2014 candles on Month screen #M1, formed a 'Bearish Engulfing' with a month close at 8283 #M1. Index closed last week at 8285.
- Last two candles on the EOW make a Dark Cloud Cover pattern #W1.
- Index closes near 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, poised again for deflection or cross #D1.
Indicators:
- MACD and its MA stay below the zero line #D2.
- STS hangs around the over bought line #W2.
Wrap:
Bulls manage to close the week at 8285, marginally above our mark of 8283 - Bears come back with a Dark Cloud Cover over the previous week #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.
- Bears produce a Dark Cloud Cover Pattern #W1 (Study Links here, here or elsewhere) #M1.
Support & Resistance:
- Index resistances that the Bulls would want to get above this week, are the Weekly 13 SMA (8333) and 8394 #W1.
- Resistances that the Bears seek to stay below, are 8283 and the Wall for January (8174)
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' #M1.Bears see life below 8174, with a shot at getting below the October'14 low on the EOD #D1.
