December 14, 2010

  • SPY hour chart with ichimoku cloud
  • The trend line in hour chart is giving support for the index.
  • Big correction may not happen unless the trend line is violated. Below the trend line Ichimoku cloud will also act as good support.
  • GAP around 119 level turned out to be a runaway GAP. 
  • For now price moving above 125.20 will help continue this uptrend.
  • ES Hour chart is showing resistance at 1247
  • Support is seen at 1238 area.
  • 1238 area was acting as resistance before the index gave a breakout above that level. So this resistance area is acting as support now.
  • Closing below 1238 will be negative in the short term.
  • ES should trade above 1247 and 1250 for bigger up moves to happen.
  • S&P 500 ANALYSIS AFTER CLOSING BELL
CHART-II
  • 5 Minutes is still in a consolidation pattern.
  • Trading in a narrow band which is moving higher.
  • Break of upper or lower boundary can give good direction
CHART-I
  • Nifty Futures 5 minutes in a channel
  • Trading below 5915 will be negative and favor bears
  • Trading above 5953 will favor bulls.
  • Nifty stands below its 20 DMA for now. For sustaining this up move nifty has to close above 20 DMA and price has to close above the resistance line drawn in first chart too.
  • Bigger resistance will be the 6010 - 6050 area. 50 DMA is near 6045 area and nifty has taken support between 6010 - 6035 many time. So this support area may act as resistance area if nifty manages to reach there.
  • SHOOTING STAR OF S&P 500
  • S&P 500 daily chart has given a shooting start pattern.
  • Shooting star pattern is a bearish reversal pattern.
  • But Bearishness can be confirmed only with a gap down the following day. In this case if SPX opens and trades above 1242 it may not look bearish.
  • CCI indicator and Price is showing negative divergence. But this one too need confirmation. 
  • But if the index opens and sustains above 1242 these negative price action may not show its effect. A gap down may help the bears.

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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