- Posted by PeterLBrandt on July 30th, 2014 at 11:35 am
S&Ps are in a very well-defined price channel — a decline toward 1900 is possible
Beginners in the art of price charting desire to draw trendlines and boundary lines using orthodox high and low prices. Experienced chartists learn that charting is a much more nuanced craft.
The S&P futures market serves as a case in point.
Novice chartists would draw a trendline using the Nov 2012 orthodox low. However, trendlines are often born from important price gaps. The Jan 2, 2013 gap in S&P futures stands as a daily, weekly, monthly and yearly breakaway gap. Thus, a trendline is best drawn using this gap, not the Nov 2012 low.
On a daily chart, the S&P futures have been advancing within the boundaries of a 19-month price channel. Prices are finding resistance at the upper end of this price channel. Should the upper boundary turn prices down, the most likely support would be the lower channel line in the price zone of 1895 to 1905 (box). Interestingly, the 1895 level was significant resistance from Mar through May 2014. Often times, resistance, once penetrated, becomes support. This is NOT a prediction of a price decline to 1900. Personally, I think too many market participants are expecting a price correction for one to happen. Yet, a trader must constantly be prepared for a variety of scenarios.
In my opinion (not worth much), the key to the S&Ps will be found int he NYSE Composite Index. $NYA is forming a well-defined H&S top pattern. A decisive close below 10,880 would complete this top and leave the S&Ps vulnerable for a decline to 1900.
This type of market research and charting lessons are continuously provided to subscribers to Factor membership. See information on the menu bar at the top of this page.
Asia — about to go parabolic?
Posted by PeterLBrandt on July 24th, 2014 at 1:45 pm
The charts of Asian equity markets are extremely constructive across the board I have blown the horn of Asian stock markets repeatedly in this […]
Intel — On its way to at least $57, then $78
Posted by PeterLBrandt on July 18th, 2014 at 9:27 am
The long-term charts present an extremely bullish scenario The advance in June 13 represented a dramatic event — $INTC completed a 12+ […]
An update on Gold charts — has the bull been injured?
Posted by PeterLBrandt on July 15th, 2014 at 9:17 am
Bias remains long-term bullish Gold experienced a sharp break on Monday. In the process it stopped me out of some long futures positions. Yet, […]
Asia — The Tigers are Ready to Roar
Posted by PeterLBrandt on July 7th, 2014 at 3:29 pm
The price charts of Asian stock markets suggest that a significant advance has started or will start soon I will let the charts […]
Have precious metals begun a new bull market?
Posted by PeterLBrandt on June 19th, 2014 at 3:52 pm
Gold is forming a possible massive H&S bottom On Sunday, June 15, I issued a Tweet that Gold was forming a possible H&S bottom pattern. […]
Chart of the Day — MakeMyTrip Limited
Posted by PeterLBrandt on June 11th, 2014 at 3:36 pm
Buying MakeMyTrip ($MMYT) might just make your year Chart is completing a massive continuation chart pattern Whenever the general market is under pressure (like […]
Chart of the day — June 6, 2014 — Woodward Inc (WWD)
Posted by PeterLBrandt on June 6th, 2014 at 8:08 am
Advance confirms 6-year continuation pattern on greatly expanded volume Woodward Inc ($WWD) has been capped at a price of 46.50 for the past […]
British Pounds getting ready to dump
Posted by PeterLBrandt on May 28th, 2014 at 3:24 pm
Overall technical outlook is consistent with trouble ahead Three technical observations are worthy of note: 1. The weekly chart resistance at 1.6900 has turned […]
If you want to be short U.S. stock indexes, do it with your enemy’s money
Posted by PeterLBrandt on May 26th, 2014 at 10:55 am
Major global indexes are making new all-time highs Around the world, major stock market indexes are registering new all-time highs. Are these false […]
Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More »