- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Tuesday 18 August 2015

Back on the 5DMA Three Day Rule

Yesterday's little double top failed at the 38.2% fib retrace and we saw the move up afterwards that I was looking for. In a move that was really impressively bullish SPX then powered through the 50 DMA, 50 DEMA, daily mid band, 100 DMA and triangle resistance, closing above all of them. Unless we see a reversal candle today I am working on the assumption that the triangle is now breaking up towards the 2165-95 target area, though in terms of the expected path I'd like to see a short term high in the 2110-20 area, then a retest of triangle resistance, daily mid band and the 50 hour MA in the 2090-5 area, then the main move up towards the 2165-95 target area.

As the 5 DMA has been broken again, SPX is on day three of the 5 DMA three day rule. the 5 DMA must hold as closing support today to avoid a likely retest of the 2052 low. I'm not expecting to see that though. . SPX daily 5 DMA chart:
For intraday support I'd like to see the daily mid band at 2095 hold as support and would be getting seriously concerned about a break back down on a break below the 50 hour MA at 2085. SPX daily chart:
I'm definitely leaning bullish today. I'm looking for an AM low to buy ideally and then a continuation of yesterday's move up.

No comments:

Post a Comment