Charts I’m Watching: Dec 19, 2014

SPX reversed as expected at the SMA20, but didn’t quite reach the optimal backtest of the megaphone pattern (2033 v 2026.) From Tuesday’s update:

As for key levels, look for resistance at the SMA10 (2040, also the purple .618) and SMA20 (2050.)  The more important level is probably the red TL — currently around 2060 — and then the former high and white neckline.

And, as updated yesterday morning:

So, we’ll look for a reversal at the SMA20 (currently 2046.84) and count the .618 and SMA10 as support for the first pullback.

2014-12-19-SPX 15 0600We’ll tag the red TL on the opening.  The only question is whether SPX will take a breather there or run on up and tag the .886 (2067) before taking a breather.  The key, as usual, is USDJPY — which just reached the .618 on its white grid.

2014-12-19-USDJPY 60 0638It’s reversing, but should remain in the rising red channel — which would mean not too much of a reversal here for it or for SPX.

UPDATE: 09:40

SPX just reached 2066, close enough for government work.  Should see it settle back from here.  Targets coming up.

2014-12-19-SPX 15 0640continued for members…


Sorry, this content is for members only.

Click here to get access.


Already a member? Login below

Remember me (for 2 weeks)

Forgot Password