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

  • Other news: News from PR Newswire
| More

Triple US Equity Index Uptrend and Target Checkup

Wed, Jan 2, 12:22 PM ET, by Corey Rosenbloom

As we start 2013 with the news that the so-called “Fiscal Cliff” is solved (or at least averted), let’s turn our attention to the Dow Jones, S&P 500, and NASDAQ charts to note current uptrend structure and possible upside targets for a continuation of the rally.

Let’s start with the bigger picture of the S&P 500 Weekly Structure Chart:

Even if you’re not a longer term trader or swing trader, it can still be very helpful to take a quick look at the weekly and even monthly chart of the main US equity indexes as we see above.

The main idea is to assess the dominant trend in motion and any key chart levels that draw your attention.

The Weekly Chart reveals a primary and intermediate term uptrend as evidenced by the rising green arrow, the series of highlighted higher highs and higher lows (which defines structure), and the EMA orientation (meaning the 20 week EMA remains consistently above the rising 50 week EMA).

As long as this structure continues, any short-sale trade (especially a swing trade) would be technically a counter-trend maneuver.

The reference points to highlight on the Weekly Chart include the 2012 swing highs at 1,422 and more importantly 1,474.

The market recently supported near the confluence of the rising 20 week EMA (1,412) and the simple 1,400 round number.

With that in mind, let’s now focus on the levels to watch as seen on the daily charts:

Let’s first state that the 5-day decline (retracement) was largely the result of traders worried that Congress would fail to reach a deal on the “Fiscal Cliff” negotiations.

Monday saw a strong rally as optimism returned and we see a strong continuation of the rally after last night’s successful passage of the “Fiscal Cliff” deal.

In other words, with one day (Monday) and an opening gap (Wednesday), the market just recovered all the losses from the previous peak into 1,450.

Now, back to the charts. Price finds an initial resistance barrier from the consolidation pattern that developed from September through October – it exists from 1,460 to 1,470.

This will be our focal point for this week, naming it the “make or break” area for bullish uptrend continuation or else bearish resistance into the target of the prior highs.

Keep in mind that the weekly chart seems to suggest additional buying pressure from the continuation of the primary trend in motion. That will be the thesis to test for the week.

Otherwise, a sudden break/reversal back under 1,450 would open the market to additional short-term selling toward the key 1,420 level.

The Dow Jones shows a similar picture through a clearer resistance level at the current highs:

I drew a blue horizontal “polarity” trendline into the 13,350 area which reflects prior support and resistance through 2012. This will be the immediate focal point.

An upside pro-trend continuation above 13,350 extends the upside target toward the similar consolidation highs from 13,500 to 13,600.

However, any sudden reversal/breakdown under 13,300 suggests a move back to the 13,100 then 13,000 key support confluence targets.

The NASDAQ broke its polarity trendline and enters the bullish zone as noted below:

I drew two horizontal “polarity” trendlines as noted – the immediate trendline exists at the 3,050 level and the lower trendline rests at 2,975. These levels reflect previous support and resistance and are focal points.

However, the NASDAQ gapped above the 3,050 level but stalled so far into the 3,100 level which is a minor pivot level as seen from the May, August, and recently the December ’spike’ highs.

Continuation above 3,100 suggests that the NASDAQ will continue moving through “Open Air” and target the 3,175 to 3,200 upside zone.

As a reminder, when assessing the daily charts and short-term levels, be sure to take a moment to view the higher timeframe, particularly the weekly chart for additional insights.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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

blog.afraidtotrade.com


SDI Glossary: "Finance" Definition
SDI Glossary: "NASDAQ" Definition
This Article's Word Cloud:   Chart   Cliff   Corey   Fiscal   Weekly   above   additional   afraidtotrade   area   attention   back   chart   charts   continuation   exists   focal   from   higher   highs   horizontal   into   level   levels   market   polarity   previous   prior   rally   resistance   rising   short   start   structure   support   swing   target   targets   term   that   through   trend   trendline   upside   uptrend   week   weekly   which   will   with   would

| More

Comparing Creeper Uptrends Intraday Jan 24
Tue, Jan 24, 1:41 PM ET, by Corey Rosenbloom

Nobody wants to be a “Creeper” but as traders we certainty do enjoy “creeper” intraday ...

From the Low to the High of the Trading Range Jan 24
Tue, Jan 24, 12:51 PM ET, by Corey Rosenbloom

Trading the market is extraordinary easy right now – buy when price touches the lower ...

The Range is All that Matters Right Now Jan 23
Mon, Jan 23, 12:51 PM ET, by Corey Rosenbloom

Stop what you’re doing and look at the trading range. Now. ...

Pondering a Perfect Pattern Repeat for Market at the Highs
Fri, Jan 20, 1:21 PM ET, by Corey Rosenbloom

A major part of technical analysis (charting) is identifying prior patterns – and their outcomes ...

This is a Very Tight Range for Traders Emini Jan 20
Fri, Jan 20, 1:11 PM ET, by Corey Rosenbloom

Stop what you’re doing and look at the trading range. Take off all indicators and ...

No Breakout Not Today Emini Trading Update Jan 19
Thu, Jan 19, 12:11 PM ET, by Corey Rosenbloom

My heart goes out to you if you excitedly decided 2017 was the year you ...

High Flying Financial Goldman Sachs GS Falls from the Highs
Wed, Jan 18, 1:21 PM ET, by Corey Rosenbloom

Stocks that are high-flyers run the risk of crashing back to earth. Goldman Sachs (GS) ...

Range Range Here to Stay Emini Update Jan 18
Wed, Jan 18, 1:11 PM ET, by Corey Rosenbloom

If you’re ready for this trading range at the highs to end, you’re not alone. ...

Emini Down from the Highs Still within the Range Jan 17
Tue, Jan 17, 11:31 AM ET, by Corey Rosenbloom

In the battle for market dominance we still DON’T have a winner! Bulls? Bears? Still ...

Still Range Trading at the Highs January 13 Update
Fri, Jan 13, 1:21 PM ET, by Corey Rosenbloom

In the battle for market dominance we still DON’T have a winner! Bulls? Bears? Nada. ...

Volatility Returns to the Emini January 12
Thu, Jan 12, 1:31 PM ET, by Corey Rosenbloom

Buyers and sellers continue to struggle for dominance at the highs and right now neither ...

From the Highs Back to our First Fibonacci Level Jan 11
Wed, Jan 11, 2:11 PM ET, by Corey Rosenbloom

I always find it fascinating when price does exactly what it’s supposed to do – ...

Crude Oil Crushes Lower as Expected from Divergences
Tue, Jan 10, 6:51 PM ET, by Corey Rosenbloom

Crude Oil gives us a textbook example of a reversal pattern – with negative divergences ...

Hey Look at that Emini Range January 10
Tue, Jan 10, 3:11 PM ET, by Corey Rosenbloom

Bull Trap? Breakout? Both bulls and bears and fighting for dominance… and neither side is ...

Emini Playing Again at the Highs January 9
Mon, Jan 9, 1:41 PM ET, by Corey Rosenbloom

Monday morning may be the beginning of a “bull trap” should price remain under the ...

Through the Highs We Go January 6
Fri, Jan 6, 1:31 PM ET, by Corey Rosenbloom

Not to be outdone by this pesky sideways trading range, the stock market broke out ...

Something Strange in Sector Relative Strength Jan 5
Thu, Jan 5, 4:21 PM ET, by Corey Rosenbloom

What signal is money flow across sectors sending, and what’s strange about it? Let’s take ...

A New Emini Range at the Highs January 5
Thu, Jan 5, 2:31 PM ET, by Corey Rosenbloom

The market has a bullish beginning to 2017 but right now, we’re seeing a return ...

VIX ETPs Flash Some Green in 2016
Wed, Jan 4, 4:11 PM ET, by Bill Luby

Last year I shocked quite a few investors and media outlets with the publication of ...

Join Us Live TODAY to Plan your 2017 with Corey and Wyckoff Analytics
Wed, Jan 4, 1:21 PM ET, by Corey Rosenbloom

Let’s start 2017 on the right pathway! I’m honored to join Roman Bogomazov and Bruce ...

The Crude Oil Extraordinary Engulfing Day Jan 4
Wed, Jan 4, 12:41 PM ET, by Corey Rosenbloom

Bullish or Bearish Engulfing Candles are rare in general, but it’s even more exceptional to ...

The Emini Surge Back to the Highs January 4
Wed, Jan 4, 12:21 PM ET, by Corey Rosenbloom

Stocks surged again, continuing the 2017 rally. We saw another bounce off our Fibonacci Grid ...

Emini Still Playing through our Fibonacci Grid Jan 3
Tue, Jan 3, 2:51 PM ET, by Corey Rosenbloom

Happy New Year! Here’s to a profitable start to your 2017. Here’s today’s updated Emini ...

The 2016 VIX Futures Term Structure: Extraordinarily Average
Mon, Jan 2, 8:11 PM ET, by Bill Luby

Two days ago, in The Year in VIX and Volatility (2016), I made no mention ...

The Year in VIX and Volatility (2016)
Sat, Dec 31, 6:11 PM ET, by Bill Luby

The consensus called for a big uptick in volatility in 2016 and while there was ...

My Low Volatility Prediction for 2016: Both Idiocy and Genius
Fri, Dec 30, 2:11 PM ET, by Bill Luby

A year ago, Steve Sears of Barron'sasked me to pen a guest column for The ...

A Second Gap Collapse Day for the Emini to End 2016
Fri, Dec 30, 1:11 PM ET, by Corey Rosenbloom

As we planned from yesterday’s update, price did bounce (gap) up away from our 2,238 ...

Sears SHLD Surges from Lows Dec 29
Thu, Dec 29, 4:11 PM ET, by Corey Rosenbloom

Are you an aggressive trader who loves to call bottom reversals? Want to try your ...

Average VIX and Volatility for Last Fourteen Presidents
Thu, Dec 29, 2:31 PM ET, by Bill Luby

What kind of VIX is appropriate for the Trump Administration? For investors in general and ...

Emini Trades Down Toward and Reverses at our Fibonacci Target Dec 29
Thu, Dec 29, 2:31 PM ET, by Corey Rosenbloom

Today’s session reminds us exactly why you should bookmark our page and read our morning ...

Apple AAPL Returns to the Swing Highs Dec 28
Wed, Dec 28, 1:11 PM ET, by Corey Rosenbloom

What’s going to happen next with big trending stock Apple (AAPL)?! Let’s plot the Daily ...

Emini Fibonacci Breakdown Update December 28
Wed, Dec 28, 12:51 PM ET, by Corey Rosenbloom

Is that an actual breakdown on a holiday week? Price shattered our First Fibonacci line ...

Believe it or Not Market Breadth Remains Strong Dec 27
Tue, Dec 27, 2:51 PM ET, by Corey Rosenbloom

As we rush into 2017, let’s pause a moment to assess the health of this ...

Perfect Pullbacks and Beautiful Breakouts for NVDA
Tue, Dec 27, 12:11 PM ET, by Corey Rosenbloom

We’ve had NVIDIA (NVDA) on our trading radar for quite some time because it has ...

Emini Relentlessly Runs for the Highs Dec 27 Update
Tue, Dec 27, 11:41 AM ET, by Corey Rosenbloom

It wouldn’t be a holiday week without a bullish drift, would it? The S&P 500 ...

Join Corey and Thousands of Your Fellow Traders at the February New York Traders Expo
Fri, Dec 23, 9:21 PM ET, by Corey Rosenbloom

Start planning today! It’ll honestly be here before you know it and you don’t want ...

Look at that Beautiful Emini Fibonacci Holiday Bounce Dec 23
Fri, Dec 23, 12:51 PM ET, by Corey Rosenbloom

It’s exciting – and lucrative – when price does exactly what it is supposed to ...

GoPro Goes for a Reversal off the Lows GPRO
Thu, Dec 22, 3:21 PM ET, by Corey Rosenbloom

GoPro is an interesting stock at a critical pivot point that grabs our attention. Let’s ...

Emini Nails our First Fibonacci on Dec 22 Pullback
Thu, Dec 22, 12:11 PM ET, by Corey Rosenbloom

It’s exciting – and lucrative – when price does exactly what it is supposed to ...

Netflix NFLX Directs a Run Back toward All Time Highs
Wed, Dec 21, 12:41 PM ET, by Corey Rosenbloom

If you’re a Netflix NFLX investor, you’re pleased that share prices are making a bold ...

Emini Forming Holiday Range at the Highs Dec 20
Wed, Dec 21, 12:11 PM ET, by Corey Rosenbloom

We’re at a new bullish normal with the @ES as price settles into a short-term ...

Big Nike NKE Struggles at the Downtrend Lows
Tue, Dec 20, 11:31 AM ET, by Corey Rosenbloom

Dow Jones component Nike (NKE) has not had a very good 2016. Price peaked above ...

Emini Still Bouncing off our Fibonacci Grid Dec 20
Tue, Dec 20, 11:21 AM ET, by Corey Rosenbloom

Up, up and away! To new highs we go! Here’s today’s updated Emini (@ES) trading ...

Post Fed Day Foibles and Quad Market Price Action
Mon, Dec 19, 2:51 PM ET, by Corey Rosenbloom

As we begin the new week, let’s reflect on how markets have predictably moved AFTER ...

Playing into our Emini Fibonacci Grid Again Dec 16
Fri, Dec 16, 2:51 PM ET, by Corey Rosenbloom

The Fed still can’t stop the Fibonacci! As I highlighted in Wednesdayday’s morning update, we ...

NVIDIA NVDA Doubles to Key 100 Per Share Level
Thu, Dec 15, 1:51 PM ET, by Corey Rosenbloom

They did it!! Buyers successfully more-than doubled the share price of tech-company NVIDIA (NVDA) since ...

Another Rally off our Emini Fibonacci Grid Dec 15
Thu, Dec 15, 1:41 PM ET, by Corey Rosenbloom

The Fed can’t stop the Fibonacci! As I highlighted in yesterday’s morning update, we had ...

December Fed Day Emini Fibonacci Grid Update
Wed, Dec 14, 12:11 PM ET, by Corey Rosenbloom

Here we are! It’s Fed Day and the board is set to raise interest rates ...

Emini Defying Gravity to New Highs Dec 13 Update
Tue, Dec 13, 12:21 PM ET, by Corey Rosenbloom

After the smallest of reasonable retracements, buyers are at it again, propelling the market to ...

Like Disney DIS Exxon Mobil XOM Surges in Breakout
Mon, Dec 12, 12:11 PM ET, by Corey Rosenbloom

Like Disney (DIS) last week, Exxon-Mobil (XOM) broke resistance, triggering a powerful bullish breakout. Take ...

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

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Triple US Equity Index Uptrend and Target Checkup | Self Directed Investor | Copyright © 2008 - 2017, 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: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.