Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, September 26, 2014

Weekend Focus Chart: The S&P

Stock Market Technical Analysis

click on image to enlarge

Following up from this afternoon's blog discussing the neutral close at 3pm which has left a lot of investors confused as to whether they should hang on for a bounce or sell now; I would like to take a look at the two EMAs most often used to reverse serious sell-offs.  These two EMAs are large and are applied to a 120 minute bars chart above.  Looking at these EMAs during the last two 120 minute bars it is easy to see that this layup setup starting to lift is what caused the market to climb so quickly this afternoon.  While nothing is a done deal in this market and there have been numerous mornings where strong setups have been overrun by big sellers, it is quite significant that they have orchestrated this sell-off to level out and turn back upward using these two EMAs.  These are their bread and butter workhorses.  

The quality of the layup is very high and the compression response and lift was virtually textbook perfect this afternoon.  If they can keep a lock down tractor program on the Forex Futures Sunday night and handle the big sellers we have been getting Monday mornings their chances of making this layup work and produce a few days of upward travel seem quite decent.

Trade well my friends


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