Learning from last Week: (click here for the previous post)
- The combination of the Big 'W' and the new Day Channel #D1, make a neat 'Cup and handle' pattern. Price oscillating in the Handle (or Day Channel) #D1 for the past couple of weeks.
Support & Resistance:
- Index was in and about the 200 SMA, after returning near the Channel Top (Day Chart) #D1 - it closed below all the MAs that we track across all three screens.
- The 5 EMA on the Daily Screen is crossed bullishly above the 13 SMA.
- RSI 13, above the 50s #W2.
Bears again hold the index to a lower high, defending the Day Channel Top #D1.Bulls keep index in the 'Handle' of the 'Cup and Handle' pattern #D1.
Looking forward into this Week:
- Day Channel bottom (pink) #D1 is support. Index Resistance for a Bull break through is the is the Day Channel's Top #D1,
- The 5 EMA on the Daily Screen will remain crossed bullishly above the 13 SMA, if the index closes above 2032 on the first trading day of 2016 #D1.
- STS in middle ground #D2.
Bulls hope for rewards from the big 'W' pattern #D1, with a breakout from the ATH #M1.
Bears push for a breakdown at the handle or the Day Channel and life below 2000 #D1..