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 previous week at 8285.
- Last week Bulls pull index up to 8514, dampening the Bear hopes for a Three Outside down by month end #M1.
- Index closes above all the MAs that we track.
- Bulls peek above the Day Channel's blue mid-line #D1.
Moving Averages:
- The critical 5 EMA and 13 SMA on the EOW, poised again for deflection or cross #D1.
Indicators:
- MACD and its MA break above the zero line #D2.
- STS stays in the over bought #W2.
Wrap:
Bulls after keeping above our mark of 8283 the previous week, breakout to control all three screens - Bears lose the advantage and are left defending the ATH or R1 on the Month Pivot #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.
Support & Resistance:
- Index resistances that the Bulls would want to get above this week, are the previous ATH (8627) and R1 on the Monthly Pivot #M1
- Support Levels that the Bears would love to get below, are 8368 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 well above 8283, Bulls intend to deny the Bears the advantage, or a Long Term 'Three Outside Down' #M1.Bears see some action begin below 8368, with a shot at getting below the October'14, low on the EOD #D1.
