The S&P500 is still allowed to tag SPX and then roll over, as it would fit with a c=a relationship on the COMPQ to $6226.

Size: px

Start display at page:

Download "The S&P500 is still allowed to tag SPX and then roll over, as it would fit with a c=a relationship on the COMPQ to $6226."

Hester Parrish
5 years ago
Views:

Yesterday I showed the different possibilities the market has, and since there s not been a >10p move to the opposite direction since the SPX2446.55 low and SPX 2469.

1 Yesterday I showed the different possibilities the market has, and since there s not been a >10p move to the opposite direction since the SPX low and SPX higher were struck (today s decline to SPX makes it only a 9.35p move) there s not a whole lot we can learn from today s price action. So I simple want to review the daily charts, starting with the NASDAQ. It looks like a triangle is forming, which should break higher and therewith confirm the green count. The RSI5, MACD and OBV are pointing higher, wanting higher prices. Only the A.I. is now on a confirmed non-ideal sell. Given that the McClellan Oscillator for the NDX (NDX-MO) peaked >60 last week, which is needed for a more sustainable rally, it adds weight to the evidence that we should see higher prices. In addition, the daily Bollinger Bands are expanding signaling price has strength. Figure 1. NASDAQ Daily TI chart: triangle forming? Most TIs still want higher prices 1 P a g e

The Dow Jones daily chart is, however, less bullish and price is stuck between the 20d and 50d SMA, with the former pointing down and about to cross the latter in a bearish manner: short term bearish.

2 The Dow Jones daily chart is, however, less bullish and price is stuck between the 20d and 50d SMA, with the former pointing down and about to cross the latter in a bearish manner: short term bearish. Price is in the red down trend channel, and below the black and blue trendlines. The TIs are all pointing down, wanting to see lower prices. A break below the 50d SMA is now needed to confirm this count for the INDU. Clearly this index is lookig worse than the NASDAQ. Now, please remember that each index should be treated seperately and parrellels between indices should not be sought just for the sake of the indices need to align mantra. Clearly we re now in a time where the indices are all doing their own thing. Figure 2. Dow Jones daily TI chart: all TIs pointing down, price in a down trend channel. Break below 50d SMA confirms the presented count. 2 P a g e

3 Since the S&P500 is a hybrid index (of the DOW and NAS) it s daily chart is also a hybrid: stuck between bullish and bearish signals. Bullish: price is still above its 20d and 50d SMA and above (red) trendline support. But these two SMAs have now crossed bearishly. The A.I. s are mostly pointing down/on sell (RSI5, A.I., MF14), but the MACD is still on a buy. As said yesterday: as long as price remains above the 20d and 50d SMA, which is also short term trendline support, the trend remains up. A break below them (SPX2451) opens the door to SPX , with the latter level being strong support (blue horizontal line). Figure 3. S&P500 Daily TI chart: stuck between the NAS and DOW; has bearish and bullish traits. 3 P a g e

The S&P500 s McClellan Oscillator (MO) ended today at +17. A 1p drop over yesterday, and thus the >60 levels the Bulls need to ensure the current rally has legs has still not been reached.

4 The S&P500 s McClellan Oscillator (MO) ended today at +17. A 1p drop over yesterday, and thus the >60 levels the Bulls need to ensure the current rally has legs has still not been reached. Instead it suggests a very narrow rally is underway. Nonetheless, the Summation Index (SPXSI) gave today a buy signal as it crossed its EMA signal line from below. Buy it is. Figure 4: SPXSI buy signal today. 4 P a g e

5 In conclusion: Nothing new to add to yesterday s update other than that the NAS, DOW and SPX daily charts all paint a different picture. Thus, the same price levels remain: >SPX2480 and the S&P is forming and EDT to SPX <SPX2452 and the preferred count remains operable, which could turn into a triangle (2 nd alternate count). The S&P500 is still allowed to tag SPX and then roll over, as it would fit with a c=a relationship on the COMPQ to $6226. ALOHA Soul, Ph.D. 2017, Intelligent Investing, LLC. This copyrighted daily periodical is published on most stock market trading days by Intelligent Investing, LLC, and is intended solely for use by designated recipients. No reproduction, retransmission, or other use of the information or images is authorized. Legitimate news media may quote representative passages, in context and with full attribution, for the purpose of reporting on our opinions. Analysis is derived from data believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the reader. Inclusion of our information for trading and investing are the sole responsibility of the reader and cannot be construed as any type of recommendation, nor solicitation. 5 P a g e

1 P a g e. Figure 1. NAS daily chart and S&P hourly chart: minute-v of minor-3 and micro-5 of minute-iv; respectively underway.

1 P a g e. Figure 1. NAS daily chart and S&P hourly chart: minute-v of minor-3 and micro-5 of minute-iv; respectively underway. With TWTR up 18.5% today 1 and now AMZN, GOOGL and MSFT up 7.9%, 3.8%, and 3.8% after hours on earnings; respectively the QQQ (ETF that tracks the NASDAQ) is up 1% after hours too. Thus, the ideal standard