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

Price Playing Perfectly through our Fibonacci Grid Sept 27
Tue, Sep 27, 11:51 AM ET, by Corey Rosenbloom

If you’re not using our Fibonacci Grids each morning, you’re missing out! Be sure to ...

Emini Slicing Down through our Fibonacci Grid Sept 26
Mon, Sep 26, 12:31 PM ET, by Corey Rosenbloom

If you’re not using our Fibonacci Grids each morning, you’re missing out! Be sure to ...

Trading Through our Fibs Sept 23 Emini Grid Update
Fri, Sep 23, 3:11 PM ET, by Corey Rosenbloom

If you’re not using our Fibonacci Grids each morning, you’re missing out. Be sure to ...

Fun with Fibonacci Emini Target Level Update Sept 22
Thu, Sep 22, 1:11 PM ET, by Corey Rosenbloom

If you’re not using our Fibonacci Grids each morning, you’re missing out. Be sure to ...

Trading Intraday Trend Reversals Webinar TODAY!
Thu, Sep 22, 8:11 AM ET, by Corey Rosenbloom

I’m excited to present today’s featured educational webinar: “Trading Intraday Trend Reversals: Specific Tips & ...

SP500 SPX Scraping the Underside of the 50 Day EMA
Tue, Sep 20, 11:31 AM ET, by Corey Rosenbloom

We follow the market on an intraday basis but it’s helpful to pull the perspective ...

Rising Range within our Emini Fibonacci Grid Sept 20
Tue, Sep 20, 11:11 AM ET, by Corey Rosenbloom

The Fibonacci Levels continue to work! It’s reassuring and exciting – and hopefully profitable for ...

Updating our Famous Fibonacci Emini Grid Sept 19
Mon, Sep 19, 12:21 PM ET, by Corey Rosenbloom

The Fibonacci Levels continue to work! It’s reassuring and exciting – and hopefully profitable for ...

GDX Gold Miners Pulls Back to Critical Support Level Sept 16
Fri, Sep 16, 12:11 PM ET, by Corey Rosenbloom

Gold – and popular ETF GDX (Gold Miners) – pulled back to a key support ...

A Range at the Lows Emini Fibonacci Grid Update Sept 16
Fri, Sep 16, 11:51 AM ET, by Corey Rosenbloom

We’re seeing a range develop between our Fibonacci Levels at the recent lows. Here’s today’s ...

Finally Seeing the Big Bullish Breakout for Apple AAPL
Thu, Sep 15, 11:41 AM ET, by Corey Rosenbloom

Apple (AAPL) showed impressive relative strength to the market this week and we’re seeing that ...

Bouncing UP into our Emini Fib Grid Sept 14
Wed, Sep 14, 12:21 PM ET, by Corey Rosenbloom

Volatility is back! We’re seeing another bounce up from the 2,110 level to our short-term ...

Apple AAPL Bullishly Bucks the Bear Day Sept 13
Tue, Sep 13, 11:41 AM ET, by Corey Rosenbloom

In a surprising move, Apple (AAPL) shares defied the broader market collapse today with a ...

The Crash after the Bounce Emini Fib Grid Sept 13
Tue, Sep 13, 11:11 AM ET, by Corey Rosenbloom

Volatility returned with a vengeance the last three days. Here’s today’s updated Fibonacci and Emini ...

The Bounce after the Crash Fib Grid Planning Sept 12
Mon, Sep 12, 12:11 PM ET, by Corey Rosenbloom

After crashing Friday from a Bearish Rising Wedge, price is now logically bouncing up from ...

Our Absolutely Correct Call on the Bearish Rising Wedge and Breakdown
Fri, Sep 9, 12:41 PM ET, by Corey Rosenbloom

In the September 8th Idealized Trades Report, I detailed the likely bearish pathway ahead with ...

Another Three Push to a Reversal Example with Dollar General DG
Thu, Sep 8, 12:11 PM ET, by Corey Rosenbloom

I love spotting and trading a “Three Push” Pattern on a Daily Chart. Why? It’s ...

September 8 Pullback Plan for Emini Fib Grid
Thu, Sep 8, 10:31 AM ET, by Corey Rosenbloom

How low will our current pullback (retracement) go? Let’s see! Here’s today’s updated Fibonacci and ...

Three Push Pattern to a Reversal in Lululemon LULU
Fri, Sep 2, 10:31 AM ET, by Corey Rosenbloom

The “Three Push” Pattern is one of my absolute favorite price patterns to play. Lululemon ...

Jobs Report Blows Market through Fibonacci Grid Sept 2
Fri, Sep 2, 10:11 AM ET, by Corey Rosenbloom

Oh my gosh it’s time to rush out and buy all the stocks because the ...

Tesla TSLA Follows our Bearish Rounded Arc as Expected
Thu, Sep 1, 11:11 AM ET, by Corey Rosenbloom

Tesla (TSLA) shares are precisely following our analysis that a sell-swing is coming, via the ...

Emini Fibonacci Target Grid Update to End August
Wed, Aug 31, 10:11 AM ET, by Corey Rosenbloom

We’re still within the trading range and price is still reacting to our short-term @ES ...

Emini Price Plays Nice within our Fibonacci Retracement Grid Aug 30
Tue, Aug 30, 12:11 PM ET, by Corey Rosenbloom

We’re still within the trading range and price is still reacting to our short-term @ES ...

Financial Stocks Liking the Prospect of Higher Fed Rates XLF FAS
Mon, Aug 29, 3:41 PM ET, by Corey Rosenbloom

The Financial and Bank stocks are loving the prospect of higher rates from the Federal ...

Beginning a Bearish Arc Lower for Tesla TSLA
Mon, Aug 29, 1:41 PM ET, by Corey Rosenbloom

Is Tesla (TSLA) about to fall off the cliff and plunge lower, completing another “Arc” ...

Rush to the Highs Emini Fibonacci Bounce Update Aug 29
Mon, Aug 29, 1:31 PM ET, by Corey Rosenbloom

Back toward the highs we go! It’s almost as if Chair Yellen said nothing that ...

Thanks Yellen Emini Fibonacci Grid Update August 26
Fri, Aug 26, 1:31 PM ET, by Corey Rosenbloom

Well THAT got interesting fast! Chair Yellen strongly hinted that conditions allow for a near-term ...

Gold's Collapse into Key Support Target August 25
Thu, Aug 25, 12:11 PM ET, by Corey Rosenbloom

Gold completed a Triangle and Price Projection Target toward the prior low which sets up ...

Bouncing Market Emini Fibonacci Grid Update August 25
Thu, Aug 25, 11:51 AM ET, by Corey Rosenbloom

After harshly joking about it Tuesday, we actually did get our expected pullback to a ...

Parabolic Arc and Big Rally for Novatel MIFI Analysis
Tue, Aug 23, 1:21 PM ET, by Corey Rosenbloom

Parabolic Arc, textbook Elliott third wave, to-the-penny 50% Fibonacci. These are just some of the ...

Never a Pullback Emini Fibonacci Grid Aug 23
Tue, Aug 23, 1:11 PM ET, by Corey Rosenbloom

Beuller? Beuller? Beuller? Pullback? Pullback? Pullback? Here’s today’s updated Fibonacci and Emini (@ES) trading levels ...

A Play for Whole Foods WFM Off Critical Support
Mon, Aug 22, 4:11 PM ET, by Corey Rosenbloom

Is it time to buy Whole Foods stock (WFM) for a rapid bounce swing trade? ...

Year to Date Sector Rotation Insights August 2016
Mon, Aug 22, 12:21 PM ET, by Corey Rosenbloom

Bull? Bear? Top forming? What’s the message from the Sector Rotation Model at the moment? ...

Range Continues for Emini Fibonacci Intraday Update Aug 22
Mon, Aug 22, 12:11 PM ET, by Corey Rosenbloom

One day we’ll get a breakout from this repeating range in the S&P 500 – ...

August 18 Emini Intraday Trading Levels Update
Thu, Aug 18, 12:21 PM ET, by Corey Rosenbloom

A short-term trading range for the @ES futures – similar to July – is repeating ...

Midday Successful Emini Fibonacci Bounce Update
Wed, Aug 17, 1:51 PM ET, by Corey Rosenbloom

Here’s a quick mid-day update of the point-perfect Fibonacci Retracement Level reversal for the @ES ...

A Perfect Pullback Lesson from Amazon AMZN
Wed, Aug 17, 12:11 PM ET, by Corey Rosenbloom

Amazon.com (AMZN) offers us a great lesson – and current opportunity – to study “Perfect ...

Technology and Utility ETFs Go Their Own Way XLK XLU
Tue, Aug 16, 12:11 PM ET, by Corey Rosenbloom

“You can go your own way!” was famously sung by Fleetwood Mac and for the ...

Small Pullback from the Highs Emini Fibonacci Grid Aug 16
Tue, Aug 16, 11:51 AM ET, by Corey Rosenbloom

Pullback? Updated levels? Uptrend continuing? Let’s take a look at our morning update. Here’s today’s ...

Start Your Monday with Corey and the Timing Research Show
Sat, Aug 13, 9:51 PM ET, by Corey Rosenbloom

I’m excited to announce that I’ll be returning to join a an exciting and informative ...

Gold Gone Wild with High Volatility Reversals
Fri, Aug 12, 3:11 PM ET, by Corey Rosenbloom

Gold (@GC) picked up volatility with large gaps and intraday strong reversals. Let’s pinpoint the ...

US Steel X Falls to Critical Support Pivot Trade
Fri, Aug 12, 12:21 PM ET, by Corey Rosenbloom

US Steel (X) surprised with a steeper retracement than expected, collapsing down from $28 to ...

August 12 Exciting Emini Fibonacci Grid Update
Fri, Aug 12, 12:11 PM ET, by Corey Rosenbloom

We’re seeing additional movement through our key Fibonacci Grid Levels. Here’s today’s updated Fibonacci and ...

NVIDIA NVDA Keeps Impressing with New Uptrend Highs
Thu, Aug 11, 4:11 PM ET, by Corey Rosenbloom

NVIDIA (NVDA) continues its strong bullish uptrend, giving us another example of the superiority of ...

Hey Our Emini Fibonacci Levels are Working August 11
Thu, Aug 11, 1:41 PM ET, by Corey Rosenbloom

If you followed our update from yesterday, you had a perfect plan for profit on ...

Dual Divergent Reversals in Stocks and Crude Oil
Wed, Aug 10, 2:41 PM ET, by Corey Rosenbloom

After holding at the highs, Stocks reversed lower today from their lofty heights. Crude Oil ...

Emini Pullback Planning Fibonacci Grid August 10
Wed, Aug 10, 2:31 PM ET, by Corey Rosenbloom

Here’s our update for today! Price pulled back and broke under our upper Fibonacci Level ...

GoPro GPRO Boldly Breaks Resistance into Bullish Zone
Mon, Aug 8, 1:11 PM ET, by Corey Rosenbloom

We’re seeing GoPro Inc (GPRO) flash on our stock scan this morning as it’s breaking ...

New Emini Fibonacci Retracement Grid August 8
Mon, Aug 8, 12:41 PM ET, by Corey Rosenbloom

Price jumped higher into the 2,180 @ES level this morning and (so far) pulled back ...

Join Corey for a Live Trading Challenge at the San Francisco Money Show August 24
Fri, Aug 5, 1:51 PM ET, by Corey Rosenbloom

I’m so excited about this opportunity! Join me live as I accept a live, real-money ...

  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 - 2016, 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.