S&P 500 Weekend update

• Click the charts to enlarge.
• Conclusion: It will be safe to stay long above 50 Day Moving Average. Shorts are safe below 200 DMA. But shorts should keep in mind the weekly trend line or the support line of the wedge in weekly chart.

NIFTY Weekend Update

• Description is clearly mentioned in the chart so click the charts to enlarge.
• Conclusion: Stay short below 50 DMA. Price staying below Day low EMA will also help bears. Close above 50 DMA will be negative for bears. Strength for bulls only above 5605 level. One can also try to sell on rise. 5530 - 5560 is a shorting zone. But once hour starts to close above 5560 levels it will be risky for bears to remain short.
• S&P 500 WEEKEND UPDATE
  

SPY Fibonacci levels and cloud analysis

• SPY Four hour chart with Fibonacci levels for the rise from 126.19 to 135.70
• Price has taken support near 78.6% Fib level for the above mentioned level.
• Price closing above this level may stop a larger correction from happening.
• But price has broken below the cloud in this time frame. So cloud will act as resistance until it is broken. Bigger up move will happen only when price breaks and closes above the cloud.

S&P 500 Hits 200 DMA

• SPX hits and bounces from 200 DMA.
• If price holds this level one may see a good rally favoring bulls.
• On the contrary daily close below 200 DMA will be fatal for bulls.
• ES POSITIVE DIVERGENCE
  

ES Hour chart analysis

CHART-II - (UPDATED)

• Positive divergence shown below is starting to show its effect.
• If the falling wedge like pattern shown above is broken on the upside we may see ES moving towards 1310 levels again.
• SPX looks like it will bounce from 200 SMA. So ES might extend gains for bulls here.

CHART-I

• ES Hour and MACD is showing positive divergence.
• If price does not make new lows we may see an up move.
• But price is trending down below 50 Hour moving average.
• So a meaningful rally may happen only if price is able to stay above 50 hour moving average.
• S&P 500 ANALYSIS AFTER CLOSING BELL
  

NIFTY Fibonacci level

• Nifty Fibonacci levels for the rise from 5195 - 5740
• Price is pausing @ 50% Fibonacci level.
• So slide will continue only if price closes below 50% level next target for which is 5403 area.

NIFTY Time Frame Comparison

• Nifty daily chart with MACD indicator is showing a sell signal. If day low is taken out the selling might get intense.
• But hour chart with MACD is showing as if it will give a buy signal.
• So before one trade the hour chart they should have the daily signal in mind. So the buy signal in hour chart may come But one should look at the price range first which is 5453 - 5520. So buy signal might only get confirmed if 5520 gets broken on the upside.
• One who goes long based on hour chart should book profits at appropriate levels before the daily sell signal comes into effect.
• Moral: one should look at price first then Indicator