Author Archives: Trader

S&P 500 Index bar chart analysis

Can the S&P 500 Index hold the 200-day moving average?
Bar chart for the S&P 500 Index showing support and resistance levels.

S&P 500 Index YTD Daily Bar Chart

Near-term downtrend for the S&P 500. If the Index cannot hold the 200-day simple moving average which is near the 50% retracement zone, then the next test is 1,340 which is the 66% retracement zone. If the index cannot hold 1,340 the next support level is around the June low price zone of 1,275.

When you trade online, always assess the probabilities. A comfortable cash level is appropriate until there is technical evidence of a reversal of the near-term downtrend.

Update for November 23, 2012: S&P500 held support at the 66% retracement zone on the intermediate downtrend. Today, it is currently trading at 1,405 and will meet resistance at 1,410 and then major resistance at 1,425.  The reversal of roles is an important concept in technical analysis: what was support on the way down is now resistance on the way up. The near-term trend is up but the intermediate trend is still down.

Reference the last chart analysis for the S&P 500 Index based on the weekly chart.

Relevant articles picked from the Web:

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

TSX Index technical analysis

Still waiting for a resolution of the lateral trading band
TSX Index still trading in the lateral trading band with support at 12,200 and resistance at 12,500.

TSX Index YTD Daily Chart

A break below support of 12,200 would indicate the start of a near-term downtrend. I would look for support around the 50% retracement zone of 11,900. A break below 11,900 would indicate a test of the 66% retracement zone around 11,700. A break below 11,700 would indicate a test of support on the weekly chart around 11,500. A break below 11,500 would indicate a full retracement of the move from the June low around 11,300. After that, I will have to dust off some of my older charts indicating the major support level of 11,000. An index or stock can fall from its own weight even in the absence of above average volume on the sell-off.

Reference the last chart analysis for the TSX Index based on the weekly chart.

Take a look at the long-term logarithmic chart of the TSX Index for the period 1988 to 2012.

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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

VIX daily chart analysis

Near-term uptrend for the VIX
VIX chart analysis showing the near-term uptrend with resistance levels.

VIX YTD Candlestick chart

VIX, the so-called fear gauge, has an inverse correlation (not always perfect) to the major U.S. Indexes. When the VIX topped in June, the S&P 500 bottomed. When the VIX bottomed in September, the S&P Index topped. Take your cues from the charts and trade accordingly. The current resistance point is 19 followed by 21. The extent of the upward movement for VIX will determine the extent of the retracement for the S&P 500 Index in the post-election correction.

Reference the last chart analysis for the VIX.

Reference the last chart analysis for the S&P 500 Index.

Relevant articles picked from the Web:

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Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

U.S. Treasury 10-Year Note chart analysis

Ascending Triangle pattern for the U.S. Treasury 10-Year Note
Ascending Triangle pattern for the U.S. Treasury 10-Year Note identified on the one year bar chart.  This pattern is most often bullish.  A breakout above the upper line completes the pattern.

U.S. Treasury 10-Year Note 1 year Daily Bar Chart

Always trade in the direction of the prevailing trend: the major trend is down, the intermediate trend is sideways and the near-term trend is up. The ascending triangle pattern identified in the above chart of the U.S. Treasury 10-Year Note is usually bullish. A breakout above the upper line around 1.900% completes the pattern. A break below the upward sloping lower line would indicate the pattern has failed.Then there would be a test of near-term support at 1.600% and a possible test of major support at 1.400%.

Reference the last chart analysis for this U.S. Treasury.

Reference the last chart analysis for the S&P 500 Index.

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Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

A dismal three year performance for the TSX Index

Major trend is sideways for the TSX Index
A three year weekly chart for the TSX Index showing the lateral trading band.

TSX Index 3 Year Candlestick Chart

Reference the last chart analysis for the TSX Index based on the daily chart which highlights the intermediate lateral trading band.

Compare this chart for the TSX Index to the three year chart for the S&P500 Index: what a difference.

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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

S&P 500 Index candlestick chart analysis

Near-term trend is down for the S&P 500 Index
Candlestick chart analysis for the S&P 500 Index showing support and resistance levels.

S&P 500 Index 3 Year Weekly Chart

Reference the last chart analysis for the S&P 500 Index based on the daily chart.

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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

TSX Index candlestick chart analysis

Still waiting for a resolution of the lateral trading band
TSX Index still in a lateral trading band with support at 12,200 and resistance at 12,500

TSX Index YTD Daily Candlestick chart

Reference the last chart analysis for the TSX Index.

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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca