- 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.

Wednesday, 2 December 2015

The Triangle and Bull Flag Broke Up

Well I said yesterday morning that Monday's close on the daily middle band leaned bullish, and the bull flag channel on SPX has now broken up and retested. The first flag target is a retest of the 2116 high, and on a conviction break above that level the full flag target would then be in the 2163/4 area. SPX 60min chart: 
If we are to see the 2160s then we'd very likely need a retrace first. The triangle on ES I posted yesterday morning has broken up with a target in the 2108 ES / 2110 SPX area. This thrust up from the triangle doesn't need to end there, but after this thrust ends the triangle thrust is very likely to be fully retraced back into the 2090 SPX area. I'd be surprised to see the thrust finish much over the 2116 high and it may well fail under it. 

The other thing to consider is that this kind of triangle setup generally marks the end of a move, so the next obvious step after the triangle thrusts ends would be a retracement that would take out Monday's low on the way to targets lower down. I'll be watching for a pattern for the triangle thrust and will be calling it on twitter when it breaks down. ES 15min chart: 
I'm looking for an AM low today followed by a test of the 2110-6 area in the next day or two. Trade safe. there are a lot of potential news bombs this week.

Just a reminder to close that Stan and I are doing a free to all Chart Chat on Sunday afternoon at theartofchart.net this week. If you are interested in TA, and/or if you are interested what are the likely next directions on SPX, NDX, RUT, DAX, USD, EURUSD, GBPUSD, Oil, NatGas, Gold, Silver, GDX, Bonds or Sugar are likely to be then I'd suggest attending. Places are limited so sign up sooner rather than later. You can sign up for that here.

No comments:

Post a comment