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).
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).


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

2 responses to “Traders Corner

Subscribe to comments with RSS.

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

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: