- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Tuesday, 17 March 2015

Important Retrace Here

SPX broke up nicely yesterday and the obvious next target is the daily middle band, now at 1991. At that test the bulls should have a chance to take control back and test the all time highs. SPX daily chart:
On the 15min chart I have a clear resistance trendline for the current move and I'm looking for a retracement today to establish the support trendline. I'm looking for support areas at broken double bottom resistance in the 2066.5 area and the 50 hour MA in the 2064 area. If reached I'd be looking for one of those to hold. SPX 15min chart:
If they don't hold then there is a bear scenario to be aware of here, and that is the possibility that SPX is forming a right angled and ascending broadening formation. If so the next target would be a retest of the lows and these patterns break down 66% of the time. SPX 5min chart:
My strong lean here is towards the short term bull scenario and a retest of the daily middle band this week. This bounce could easily fail there though and I'm hoping that the retrace low today will help assess how likely such a failure would be.

No comments:

Post a comment