Tuesday, November 19, 2013

Back from Outer Space

Its been awhile I know but it has been a busy week for me with work (yes I have a job as an underwear model) and family life (tragedy struck again this time on my wife's side of the family).  However, it was an interesting week to just simply observe the markets run to all time highs and read the headlines explaining why the markets are moving higher and of course why there will be a correction.  I don't usually follow financial news.  However, I do view the news as a meanings to an end.  How else can you convince the masses to buy or sell if not using 'reliable and dependable' news?  So lets see what the market is really doing.

Below are the SPX 30min and 15min PnF charts respectively.  Both show the same trading range which turned out to be an accumulation phase leading to a rally to all time highs.  That trading range is now our support level to watch.  The 30min chart highlights the relatively high volume transacted during the accumulation phase which will determine the strength of the rally.   The 15min chart provides a more granular view of the price action after the 1773.1 breakout.  A trip back down to this support area doesn't seem out of the question.

The SPX daily candlestick chart below shows that price is still above its 10 and 20 day moving average (dma) which are potential support areas as well.  Actually the 20dma is starting to converge with the top of the trading range at 1773.1 which would be a potential area to go long should we see demand come into the market if price makes its way down there.  We will definitely be accessing this when the time comes.

Thanks for reading.

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