- 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.

Thursday, 11 June 2015

The Daily Middle Band Test

A very strong day yesterday and SPX broke and closed over the 50 hour MA and the 50- day MA and EMA. I've looked at the stats for tall white candles that have broken and closed over the 50 day MA and EMA in the last year and there have been eleven. Of those eleven only one closed below both the next day and that was marginal. Six never even retested them as support. They closed at 2100/1 and that may well therefore be very strong support today.

If these hold on a retest, which I'm expecting them to do, then the next level of resistance that the bulls need to break is at the daily middle band and declining resistance from the high at 2111/2. A close back over this level with any confidence opens up a retest of the all time high at 2134. SPX daily chart:
All the reversal patterns that I posted yesterday morning had made their targets by the close yesterday, as had the fixed 15min buy signal that I mentioned. The SPX chart below illustrates why the 2111/2 area is important here at it is (70% bullish) falling megaphone resistance. Scan 3x 15min SPX INDU TRAN charts:
Scan 3x 15min NDX RUT NYA charts:
I'm expecting some kind of retracement to start today, and I'm doubtful about seeing any break of strong resistance turned support at 2000/1. That retrace low should be a good buying opportunity. for a run back into a retest of the all time high, and the very likely fail there.

No comments:

Post a comment