The Market has broken out of its pattern to the upside with
a huge jump which occurred at 00:30 HST.
The news is reporting the reason is China’s rate cut. The move has oversold the SPX RSI from the 15
to the monthly with only the weekly remaining below 70. This was preceded by an AIQ Trading Expert
having issued a 97 up for the NASDAQ market on November 20. After the premarket advance in the index futures,
an Engulfing pattern formed on the 5 Emini chart with a Failure Swing on the
RSI and MACD, this was accompanied by high volume. The Engulfing pattern eventually manifested
to the 15 then to the 30 minute charts.
These too were accompanied by high volume. This resulted in a drop to price support at
the 2060 level. A 123 bottom formed on
the 5 minute chart with Failure Swings on both the RSI and MACD. At the same time the bottom created a F/S on
the 15 minute RSI. The 1 hour showed a
double hammer with decreasing down volume.
Friday, November 21, 2014
Thursday, November 20, 2014
November 20, 2014
The Market is still cycling upward 22 hours in duration with a magnitude of 20 points. The entry occurred just below the 1 hour 200 MA. The Day Closed with a 16 point gain in 9 hours.
The Bottoming formation was difficult since it Ved. The 5 minute showed a Triple F/S on the RSI with a hammer on a double bottom which occurred 4:15 HST 9:15 EST.
Remember the a continuation entry is often a leap of faith.
Subscribe to:
Posts (Atom)