Wednesday, February 4, 2015

SPX Daily Chart Moving Averages Sideways Channel Symmetrical Triangle H&S

The choppy sideways dance continues in 2015. Price is moving through the thin blue channel lines with overhead resistance at the 2061 and 2067 levels and support at the 2002-2003, 1998 and 1988 levels. Price now heads up towards the top side again and is above the 50-day MA at 2044.43 a big win for bulls. The SPX is at the top rail of the blue symmetrical sideways triangle pattern. The major indexes are exhibiting the sideways behavior squeezing in with lower highs and higher lows ready to make a big decision this month. A breakout above and out of the blue triangle would target 2180. A breakdown from 2010 under the triangle would target 1880.

The purple H&S pattern is in play. It has two right shoulders and potentially a third that may occur today. Failure at the 1972-ish neck line would send price back down to the October lows. The volume over the last few days shows stronger selling interest than buying interest so traders are selling the rallies. The PBOC cut the triple R ratio's for Chinese banks which created lift in global stocks this morning. Stocks are moving in sync with the oil price, today oil is leaking lower so futures are a shade negative. The indicators (RSI, MACD) are squeezed sideways so a big move should occur from here, from the 50-day MA at 2044. A bounce or die decision is required. Bulls win above 2044. Bears win below 2044. If price remains above and heads higher watch the strong resistance levels at 2061 and 2067. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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