Traders Corner   2 comments

The S&P 500’s daily technicals are looking neutral, while the weekly technicals are overbought (specifically the RSI and the Williams %R). However, this month’s chart has an eerie look to it. If you look at October’s high of 1775, it was achieved on a down day, and immediately followed by another down day, before the market leveled off and proceeded up to…November’s high of 1802, which was achieved on a down day (Monday), and immediately followed by another down day (yesterday).

On the other hand, September’s high of 1729 was achieved on a down day, followed by a down day…and followed by three more down days, eventually ending up at 1646 three weeks later. Of course, three weeks after that, the S&P 500 was back up to October’s high of 1775.

I would still contend the overall long-term trend is bullish. But we may only reach new highs after going through a valley.

The S&P 500 levels to watch today:

UPSIDE: 1788 (November 18th’s low), 1790-1791 (2 data points), 1795 (November 19th’s high), 1797 (top of the Bollinger Bands), 1798 (November 15th’s high), and 1802 (November 18th’s high and the all-time high).
LAST CLOSE: 1787.
DOWNSIDE: 1784 (November 19th’s low), 1782 (November 13th’s high), 1780 (November 14th’s low), 1773-1775 (3 data points and October’s high), 1770-1771 (2 data points), 1769 (20 day moving average), 1764-1768 (5 data points), 1760-1762 (3 data points), 1752-1755 (2 data points), 1746-1747 (2 data points), 1740 (bottom of the Bollinger Bands), 1729 (September’s high), and 1728 (50 day moving average).

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Posted November 20, 2013 by edmcgon in Daytrading, Investing, Market Analysis, Technical Analysis

2 responses to “Traders Corner

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  1. Gave up on TC, down 15%. It is down everyday since i bought it.

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