August 18, 2010

UPDATED CHART
  • S&P 500 has crossed the 50 hour moving average.
  • Now yesterday's high price of 1100 will be the next hurdle to cross.
CHART BEFORE UPDATION
  • S&P 500 is testing 50 hour moving average again.
  • The index got resisted at the 50 hour moving average yesterday.
  • Breakout with good volumes can take the index higher.
UPDATED CHART
  • As expected from the below chart the correction is getting deeper

  • Dow Jones futures gave a good breakout above 10360 Yesterday and was followed by a near 100 point rally. But the index was not able to sustain at higher levels.
  • Today it has given away most of the gains. We had an intraday dip below 10360.
  • If the index goes below 10360 again the correction may become deeper.
  • As long as the index trades above 10360 long trades can be initiated. 
TODAY'S TARGET ACHIEVED
  • Minimum target of 15 to 20 points is achieved.

  • Nifty is getting resisted near day high of 5448.
  • A break out can give 15 to 20 points minimum.
  • If it gets resisted it will remain in a range.


  • Nifty has given a gap up. But the index has not managed to break an important resistance line in 15 minutes chart.
  • Good up move is possible only on a good volume break of the resistance line.
  • Nifty closed near day low ema. Nifty has closed below 20 sma for the last 2 days.
  • 50 day moving average is approaching the price so the consolidation may come to an end soon.
  • DOW JONES END OF DAY ANALYSIS
DAILY CHART
HOUR CHART
  • Dow Jones Industrial average closed 103.84 or 1.01% up.
  • Index closed above its 50 DMA. But got resisted by the 20 DMA. 
  • The hour chart also shows how 50 hour SMA acts as resistance.
  • DOW JONES HOURLY CHART ANALYSIS



  • S&P 500 hits resistance at 50 hour SMA.
  • It seems there will be a consolidation at this level before taking the next direction
  • DOW JONES HOURLY CHART ANALYSIS

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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore