Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  

  • Other news: News from PR Newswire
| More

Updating SP500 and INDU Swing Structure and Key Levels

Fri, Nov 2, 11:32 AM ET, by Corey Rosenbloom

What are the key Daily Chart levels in the S&P 500 and Dow Jones Industrial index and – taking it one step further – what does the current swing structure suggest about the next move?

Let’s update the Daily Charts and Intraday Structure Charts for these indexes, starting with the S&P 500:

A quick look at the Daily Chart shows us the current EMA resistance cluster near 1,430.

This will be the key pivot level that will define a bullish bias (breakout) above 1,435 and 1,440 (which would target 1,460) or else a continuation of the bearish swing structure in motion which puts 1,400 then 1,380 as potential downside targets.

It will be very important to note how the market closes Friday and behaves on Monday relative to the overhead EMA resistance cluster.

The Swing Structure similarly rests at a turning point:

Check out my prior update on “Swing Structure” to see how price behaved as expected in terms of reversing and trading toward lower targets (educational reference).

Now, we face a similar situation in terms of the structure, meaning classic structure suggests a turn lower may be more likely than a powerful upswing continuation or breakout.

This time, I overlaid price distance to the swings in order to highlight the progression.

In looking at structure, our main goal is to assess trend and we do so simply by measuring the reversal points or swing highs and lows.

A downtrend is a series of lower lows and lower highs while an uptrend is a progression of higher highs and higher lows.

We can take it one step beyond by quantifying price distance traveled on swings with the thesis that price travels more distance in the pro-trend swings and less distance in the counter-trend retracements.

Intraday Structure started to reverse in mid-October when price pushed to a lower low (covering more distance on the way down) and rallied to a lower high (again with less distance than the downswing).

From there, price impulsed 60 points lower confirming the downtrend and at the moment, we’re seeing a rally higher which is where we focus our attention.

Structure will tilt to the bullish case (breakout thesis) if two things happen:

  1. Price breaks above the 1,430 Daily Chart resistance cluster
  2. The current intraday swing (in motion) trades GREATER than 38 points.

Price rallied 38 points on the prior upswing in mid-October to give us that reference.

That’s what we’ll be watching today and into next week: Will price break resistance and will this current ‘retracement’ swing develop into an “impulse” swing.

The situation is identical in the Dow Jones, yet the current resistance cluster is perhaps stronger:

The 20 and 50 day EMAs cluster (cross) exactly at 13,290 and of course that’s where we’ll focus attention as the key “Bull/Bear” Pivot.

A firm breakthrough above higher favors a stronger rally and strengthening of bullish structure but UNTIL that happens, we’ll focus on the potential for a stall into resistance.

The lower target remains the 13,000 “Round Number” and 200d SMA cluster.

Intraday Structure also reminds us that we are at a “make or break” turning point:

The last two bullish rallies traded up roughly 285 points. That’s what we’ll compare with the current swing.

Adding 285 points to the recent swing low at 13,040 gives us a “similar structure” swing toward the 13,325 level.

Of course, it would be a very bearish sign if price failed to rally to this level – today’s high so far failed into the 13,300 price resistance.

Going forward into next week, let’s focus on the key daily chart EMA cluster resistance levels and the objective swing structure in motion.

It would be a very bullish development (potential intraday trend reversal) to break through resistance and extend the upward swing in motion, but unless that happens soon, structure seems to suggest a potential return to the prior swing lows.

Either way, what happens here will help shape our short-term trading plans and price targets for the next swing.

Corey Rosenbloom, CMT
Afraid to

Follow Corey on Twitter:

Corey's new book The Complete Trading Course (Wiley Finance) is now available!

SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
This Article's Word Cloud:   Chart   Charts   Corey   Daily   Intraday   October   Price   Structure   above   afraidtotrade   break   breakout   bullish   cluster   current   distance   focus   happens   higher   highs   into   less   level   lower   lows   more   motion   next   points   potential   price   prior   rallied   rally   resistance   structure   swing   swings   target   targets   than   that   trend   turning   very   what   which   will   with   would

| More

Oct 2 Bad Jobs Report Bull Market Update and Stock Scan
Fri, Oct 2, 3:51 PM ET, by Corey Rosenbloom

The Jobs Report was worse than expected so let’s buy stocks because the Fed won’t ...

Is This Finally the Reversal Low for WYNN?
Fri, Oct 2, 12:31 PM ET, by Corey Rosenbloom

Did we just see the bottom for shares of Wynn Resorts (WYNN)? Let’s update our ...

October 1 New Quarter Market Update and Stock Scan
Thu, Oct 1, 1:31 PM ET, by Corey Rosenbloom

Welcome to October and the final quarter of 2015! Price is falling from resistance as ...

Crude Oil Continues Consolidation in Tight Range
Thu, Oct 1, 11:41 AM ET, by Corey Rosenbloom

We’re awaiting a breakout from the coil or consolidation range pattern in Crude Oil. Let’s ...

Buy or Sell? Updating the Levels for the Big Four US Stock Market Indexes
Wed, Sep 30, 4:11 PM ET, by Corey Rosenbloom

Believe it or not, the big four US Stock Market Indexes – S&P 500, Dow ...

Bouncing Rally Market Update Sept 30 and Stock Scan
Wed, Sep 30, 3:11 PM ET, by Corey Rosenbloom

As we officially end September, let’s take a look at today’s planning update as stocks ...

Study this Free Course on the "Why, What, and How" of Trading with Elliott Wave
Tue, Sep 29, 7:41 PM ET, by Corey Rosenbloom

If you’ve dabbled with Elliott Wave in the market and either love it, hate it, ...

Range Day Bounce Market Update with Stock Scan Sept 29
Tue, Sep 29, 4:21 PM ET, by Corey Rosenbloom

After a stellar trend day down yesterday, odds favored a Range Day Consolidation for today, ...

The 2015 Boom and Bust for Biotechs and Health Care
Tue, Sep 29, 11:31 AM ET, by Corey Rosenbloom

In yesterday’s big sell-session, Biotech and Health Care stocks were among the biggest laggards of ...

Down to the Lows We Go Market Update and Stock Scan Sept 29
Mon, Sep 28, 3:21 PM ET, by Corey Rosenbloom

There we go again! The general expectation was that price would likely retest or trade ...

Sept 25 Rally Update and Super Stock Scan
Fri, Sep 25, 2:51 PM ET, by Corey Rosenbloom

Yesterday’s mid-day reversal continued with a bullish rally all the way toward the 1,950 target. ...

Sept 24 Another Down Day Update and Big Stock Scan
Thu, Sep 24, 2:21 PM ET, by Corey Rosenbloom

We’re seeing another sell-session that’s similar to what we saw Tuesday. Let’s update our levels ...

What's Up (I mean Down) with WYNN?
Wed, Sep 23, 2:41 PM ET, by Corey Rosenbloom

So, what’s going on with WYNN Resorts? This stock has consistently appeared on our “Weak ...

Sept 23 Range Day Update and Power Trenders Scan
Wed, Sep 23, 2:21 PM ET, by Corey Rosenbloom

An upside rally took price into 1,950 on negative divergences while a Trading Range gripped ...

Nine Weak Downtrending Stocks to Start the Week
Tue, Sep 22, 10:41 AM ET, by Corey Rosenbloom

As we start a new weak of bearish price action in the stock market, let’s ...

Sept 21 New Range Market Update and Big Stock Scan
Mon, Sep 21, 3:21 PM ET, by Corey Rosenbloom

Today’s session saw a bullish bounce take price higher into resistance as a trading range ...

Sept 18 Breakdown Market Update and Interesting Stock Scan
Fri, Sep 18, 2:31 PM ET, by Corey Rosenbloom

After yesterday’s Fed Day update, stock prices srugned into the 2,020 S&P 500 target and ...

Ouch! XLF Financials Break Support to Trigger Breakdown
Fri, Sep 18, 2:11 PM ET, by Corey Rosenbloom

Stocks in the Financial Sector are triggering potential bearish sell signals today on a breakdown ...

Triple Index Key Level Planning to End the Week
Fri, Sep 18, 1:51 PM ET, by Corey Rosenbloom

After the volatility and retracement, what levels are important right now in the S&P 500, ...

Sept 17 Fed Day Market Update and Stock Scan
Thu, Sep 17, 2:31 PM ET, by Corey Rosenbloom

“There is a zero percent chance the Federal Reserve will announce a rate hike (rise) ...

Sept 16 Rally Update and Big Stock Scan
Wed, Sep 16, 2:11 PM ET, by Corey Rosenbloom

Yesterday’s strong money flow suggested additional upside price action – and that’s exactly what we ...

Triangle Trendline Breakout for Gold and Crude Oil
Wed, Sep 16, 12:51 PM ET, by Corey Rosenbloom

We’ve been monitoring short-term triangles in all markets, and we’re seeing both Gold and Crude ...

September 15 Triangle Breakout Market Update and Stock Scan
Tue, Sep 15, 2:11 PM ET, by Corey Rosenbloom

Finally! The market is breaking free – to the upside – from the Triangle Pattern. ...

The End is Also Near for Crude Oil Triangle (Breakout Near)
Fri, Sep 11, 1:51 PM ET, by Corey Rosenbloom

While “The End is Near for the S&P 500 Triangle,” we’re also seeing the end ...

The End is Near for Symmetrical Triangle in SP500
Fri, Sep 11, 1:11 PM ET, by Corey Rosenbloom

“The End is Near!” For the ongoing Triangle Pattern in the S&P 500 right now ...

New Video: The RSI Indicator and Market Reversals (What's Happening Now?)
Thu, Sep 10, 8:11 AM ET, by Corey Rosenbloom

We continue the “Is the Market Retracing… or Reversing” Study with a look-back on the ...

Live Webinar Class Tonight! One Trader's Path to $500,000 Profits
Wed, Sep 9, 2:11 PM ET, by Corey Rosenbloom

Tonight’s the night! John Carter will be sharing his story of how he grew a ...

Sept 8 Another Big Rally and Trending Stock Scan
Tue, Sep 8, 3:31 PM ET, by Corey Rosenbloom

The Consolidation after the Drop continues with another big trend day to start the holiday ...

Keltner Channel Level Update for SP500 and NASDAQ
Tue, Sep 8, 1:21 PM ET, by Corey Rosenbloom

After the 2015 high volatility sell-swing in the US Stock Market, all indicators have been ...

Stock Market Retracement or Reversal? New Video Comparison
Tue, Sep 8, 11:51 AM ET, by Corey Rosenbloom

What similarities can we draw between the 2010 and 2011 Corrections (Retracements) and what lessons ...

Yet Another Selloff Market Update and Big Trender Stock Scan Sept 4
Fri, Sep 4, 3:11 PM ET, by Corey Rosenbloom

A sideways Triangle Pattern is forming in the market right now in a consolidation from ...

Extreme Risk and Reward: Follow-up on the Collapse of Leveraged Oil Funds DWTI and DTO
Thu, Sep 3, 3:51 PM ET, by Corey Rosenbloom

I absolutely was NOT kidding when I stressed the extremely high risk of trading inverse ...

September 3 Expected Rally Market Update and Stock Scan
Thu, Sep 3, 2:11 PM ET, by Corey Rosenbloom

Odds strongly favored a continuation of the bullish movement from yesterday (see yesterday’s mid-day update ...

China Growth and Market Structural Integrity Top List of Fear Poll Concerns
Thu, Sep 3, 8:11 AM ET, by Bill Luby

After a hiatus of almost a year (the October 2014 pullback, to be exact), I ...

Key Price Planning Levels Updated for Chipotle CMG
Wed, Sep 2, 2:21 PM ET, by Corey Rosenbloom

After a huge price surge from $600 to $760, Chipotle (CMG) shares retraced to a ...

September 2 Bouncing Market Update and Big Stock Scan
Wed, Sep 2, 2:11 PM ET, by Corey Rosenbloom

Today’s session saw a bullish reaction higher to a key intraday resistance level. Will price ...

VIX and More Fear Poll for September 2015
Tue, Sep 1, 5:51 PM ET, by Bill Luby">">Which of the following makes you most fearful, anxious or uncertain about the stock ...

Charting a Dead Cat Bounce in SP500 and Russell Futures
Tue, Sep 1, 10:51 AM ET, by Corey Rosenbloom

Are we setting up the fall-leg (sell-off) of a Dead Cat Bounce? Let’s chart the ...

Video: Actionable Option Strategies in Any Market Condition
Tue, Sep 1, 8:11 AM ET, by Corey Rosenbloom

I’m excited to share with you my colleague John Carter’s new video he just released ...

Charting China with FXI - The Boom and Bust
Mon, Aug 31, 12:31 PM ET, by Corey Rosenbloom

We’ve seen so many headlines recently about China, its economy, and how it pulled down ...

Aug 28 Sideways Market Update and Stock Scan
Fri, Aug 28, 3:11 PM ET, by Corey Rosenbloom

Yesterday’s relief rally stalled into overhead resistance at the 1,990 target level. What levels are ...

Finally a Bounce Back Reversal for Crude Oil
Fri, Aug 28, 1:31 PM ET, by Corey Rosenbloom

Like stocks, Crude Oil is finally getting a strong bullish bounce. However, unlike stocks, Crude ...

August 27 Big Trend Rally Update and Stock Scan
Thu, Aug 27, 2:31 PM ET, by Corey Rosenbloom

The bounce continued! The relief rally propelled stock prices higher, breaking free from a Triangle ...

New Color Structure and Value Area Reference Chart for SP500
Thu, Aug 27, 11:41 AM ET, by Corey Rosenbloom

During volatile times, it’s often helpful to step back to get a broader, simpler perspective ...

August 26 Bouncing Market Update and Big Stock Scan
Wed, Aug 26, 3:21 PM ET, by Corey Rosenbloom

Eventually this market has to rally, right? We’ll see – continue focusing on our key ...

Today's Midday Update is Very Different than Yesterday's Aug 25
Tue, Aug 25, 2:11 PM ET, by Corey Rosenbloom

While yesterday was another powerful sell (liquidation) session in the market, today sparks a sudden ...

Third Biggest and Second Longest SPX Peak to Trough Pullback Since March 2009
Mon, Aug 24, 8:51 PM ET, by Bill Luby

Nary a pullback goes by without at least a handful of requests to update my ...

Last Two Days Are #5 and #6 One-Day VIX Spikes in History
Mon, Aug 24, 6:11 PM ET, by Bill Luby

Many readers have commented that one of their favorite of my regular graphics is the ...

Four Strong Dow Stocks Shattered by the Selloff (But Bouncing Back)
Mon, Aug 24, 2:11 PM ET, by Corey Rosenbloom

Until recently, four leading stocks in the Dow Jones Index were trending stably, comfortably higher ...

Apple AAPL Big Drop into Bigger Buy Support Target Update
Mon, Aug 24, 1:11 PM ET, by Corey Rosenbloom

Apple shares (AAPL) declined with the technology sector and of course broader market recently, though ...

  More articles:  1 2 3 4 5 6 7 next »


Updating SP500 and INDU Swing Structure and Key Levels | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: -- a subscription-based online social networking forum of serious individual investors. | -- videos appearing on SDI are produced by Market News Video. | -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.