SPY Moving away from the Island Top

CHART-II - (UPDATED)

CHART-I

• SPY is moving away from the island top formation.
• Price staying below 133.30 level will favor bears.

NIFTY hits the support level again

• For bears above shown level has to break.
• For bulls price fall should stop here for another attempt towards resistance levels.

NIFTY Weekend Update

• First chart shows a Broadening pattern breakout and price retesting the resistance line of the pattern. Normally when price reenters a pattern it is followed by good move in the opposite direction of the breakout. It may also be a partial dip into the pattern and then an Up move. Most important level here is 5604 and the 50 Day Moving average.
• 2nd chart shows falling weekly trend line with Bearish candlestick patterns. We had two bearish engulfing patterns which gave good result for bears. Then we had a Pin Bar which is a powerful reversal candle. Now we have a spinning Top. Spinning Top is not a reversal candle It shows indecision. When black  spinning top appears after an up move it is normally followed by a correction.
• Last chart shows the line chart of nifty week with reduced volume. According to classic technical analysis towards the end of a consolidation pattern the volume goes down as shown by the volume moving average in the chart. Now price is near the apex of the pattern we will soon see an explosive move out of this pattern with increased volume.
• Broadening pattern failures can give good correction. We saw one such pattern during last week in S&P 500 Futures 30 Minutes Time frame. CLICK HERE TO SEE THE CHART

PIN BAR Of CATERPILLAR

• Pin Bar is a highly reliable reversal candlestick patterns.
• If the GAP does not close there is a chance for an Island Reversal pattern.
• These two patterns may reverse the trend in daily chart.

S&P 500 Weekend post

• SPX Daily chart shows price struggling to stay above 78.6% Fib level.
• Hour chart may go into a range next week between 1333 - 1356.
• Price for now is staying above 50 Hour moving average.
• Price sustaining below 1333 will favor bears.
• For Bulls it will be an uphill battle to cross 1356. We may see a sell on rise price action playing out from next week.
• SPY update of ISLAND REVERSAL PATTERN
  

Bearish Candlesticks @ 200 DMA

• Bank nifty has given a bearish engulfing pattern @ 200 DMA.
• Nifty has given a Dark cloud cover pattern.
• CNX IT has given a similar result from 200 DMA.
• For bulls price is still above 50 Day Moving Average. 
• So We have to see if these candlesticks take price below 50 DMA or not. If the correction is limited to 50 DMA then chance of another attempt to break 200 DMA may arise. 
• Nifty's correction was started from this small triangle pattern
  

SPY Update on island reversal

• Chance of an island reversal does exist. But the GAP has already started fading.
• Market started moving up Just before the closing bell. If this continues then island reversal pattern will become invalid.
• As of now island top has clearly formed.