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 author of this article may hold long or short positions in the featured stock or index.
Major uptrend still in effect for the S&P 500. But how long more will it last?
S&P 500 5-Year Weekly Chart
There is a high probability the S&P 500 will test the trendline which is the 200-day simple moving average.
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“The trend is your friend until it ends.”
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 author of this article may hold long or short positions in the featured stock or index.
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.
Retracement zone if the S&P 500 cannot hold support
S&P 500 Index 6 Month Daily chart
What is the trend? That is the most important point to determine in technical analysis and you always trade in the direction of the trend. The major trend is up, the intermediate trend is up and the near-term trend is down. The S&P 500 Index has gained around 16% from the June low for the current intermediate uptrend. Anytime an index or stock has gained around 20%, reversal signals on the charts take on greater significance. Trading is all about the assessing the probabilities.
The intermediate uptrend is still intact but the near-term downtrend must stop at the intermediate support zone. This support zone is around 1,420 which was a resistance point in the uptrend. The reversal of roles is an important concept in technical analysis. Also, the support zone is around the 50-day simple moving average which is always an important input in automated trading systems. And, the support zone is at the intersection of the upward sloping trendline.
The retracement zone is based on the 50% retracement of the move which started in June. Also, the retracement zone is near the 200-day simple moving average which is also an important input in automated trading systems.
In summary, always trade in the direction of the the intermediate trend until there is a confirmed break of the trendline. Traders use different time and percent levels for confirmation numbers.
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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.
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.
TSX decline to 13,200 represented a minimum retracement level of 34.4%
There are no firm rules when an index or stock retraces a prior move. The minimum retracement level would be 33% and the maximum would be 66%. If the correction passes the 66% level, there is a high probability the stock or index will retrace the prior move.
S&P/TSX 1-Year Weekly Chart
The most important points for the above TSX chart analysis are:
The 50-day moving average is a good approximation of the trend line.
The major trend ( longer than six months) is up.
The intermediate trend ( three weeks to three months) is up.
The near-term trend ( less than three weeks) is now up.
The March correction was a 34.3% retracement of the July to March upswing.
The March correction was -7.7%.
The support level of 13,500 held on the pullback.
You can reference recent chart analysis of the S&P/TSX index to see where the index made an assault on the 13, 500 level. Then there was the break and the run to the March high.
Maintain a neutral trading strategy at this juncture in the S&P/TSX index with alerts at the 14,200 and the 13,800 levels. A close above 14,200 would be a possible indicator to add to long positions as the index attempts a break through the recent high of 14,300. A close below 13,800 would be a possible indicator to liquidate some long positions as you monitor major support at 13,500.
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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.
