Charts I’m Watching: Jan 29, 2015

Yesterday was another one of those days when everything just fell into place.  From the initial post:

With the close at the SMA10 support yesterday, and a subsequent pop in the futures, the immediate trend looks to be higher…

Continued in the members’ section:

If SPX can hang on to the TL connecting to the 2019 lows, that TL could be considered part of a larger rising channel… If, however, prices drop below the tentative purple channel bottom, then our Gartley Pattern target at 2004 starts to look pretty good.

The pre-opening chart (below) showed both upside and downside scenarios — courtesy of the impending FOMC announcement.  The key to which direction SPX took was the purple channel bottom mentioned above.

2015-01-28 SPX 15 0615SPX popped at the opening, gaining 13 points to tag our upside target at 2040, then reversed dramatically in three waves to tag our 2004 target in the closing minutes (bottomed out at 2001.49.)

2015-01-29 SPX 15 0600The only adjustment we needed to make was to move the yellow target to later in the day — thanks to the initial spike following the Fed’s proclamation that the economy is hunky dory.

We called for a rebound at 2004, as it completes a Gartley Pattern (the white .786) as well as a Crab Pattern (the smaller, white 1.618.) and  — yet, again — tests the SMA100 and a key channel midline.

The falling red channel has served us well on the slide from 2064.  At this point, however, SPX has to decide whether to respect the falling white channel, into which it strayed in its latest backtest.

continued for members


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