Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Pages
▼
Wednesday, May 9, 2012
SPX 30-Minute Chart Downward-Sloping Channel
Note the 8 MA is under the 34 MA favoring bears. The 8 MA has curled up and the two moving averages are headed for a showdown so watch for that. See how the 8 MA dropped under the 34 MA on 5/2/12 which signaled trouble ahead. The blue lines show a head and shoulders pattern that targeted the 1370-1373 area that ended up failing as well. The purple lines show the positive divergence that bounced price yesterday as well as today. Each candle represents 30 minutes and the indicators favor another matching high for prices except for the money flow that may be rolling over. Since the day is coming to an end, the resolution to all this drama may have to wait until the morning since a couple hours of time is likely needed which is four candles of time so that takes us thru the open tomorrow.
The red channel carries price lower. Watch to see if price can jump up and out of the top rail at 1360-1361. This would occur with the 8 MA crossing above the 34 MA and the bulls beginning a rally. If the top rail spanks price back down, and the 8 stays under the 34, the next target lower is the bottom rail at 1330-1335. In a nutshell, bears rule with the 8 MA under the 34 MA. This information is for educational and entertainmnet purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
On the futures the trendline broke to the upside I traded the kiss back I'm not sure what its doing now but at last look the breakout of the downtrend line was acting as support. I suspect there will be a nasty fake out in early hours tonight but Im leaning toward a big bounce up scenerio. If you add a ROC 12 study on the 30min SPX and draw a trendline on that you'll see that downline broke yesterday near the close and proofed out really nicely today. Not beimg so far the bottom (10 points) from low if the upper trendline breaks on the channel 1st stop looks good at the 250MA 1382.32
On the futures the trendline broke to the upside I traded the kiss back I'm not sure what its doing now but at last look the breakout of the downtrend line was acting as support. I suspect there will be a nasty fake out in early hours tonight but Im leaning toward a big bounce up scenerio. If you add a ROC 12 study on the 30min SPX and draw a trendline on that you'll see that downline broke yesterday near the close and proofed out really nicely today. Not beimg so far the bottom (10 points) from low if the upper trendline breaks on the channel 1st stop looks good at the 250MA 1382.32
ReplyDelete