Here are the closing prices for the last three Fridays. Green means Friday’s price closed above its SMA while red means it closed below. While prices have been trading sideways for the last three Fridays, we can see how the SMAs are trending down in relation to price.
On this chart we can see that after $SPXA50 & $SPXA200 have peaked, that prices on the S&P 500 drop significantly.
<O
Feel free to laugh at my Head, Neck & Shoulders. I realize this doesn’t meet the technical definition of a H&S, but I’ve been wrong before so why stop now? Truth be told, if you want to treat this like a full fledged H&S, then our price target would be 835. But I happen to think those pink gaps (the neck) are interesting and if you subtract them from the equation then we get a target of 849.
<OI’m not sure the 60 minute chart can bounce off its 200 SMA a second time. I’m sort of expecting to see slide-skidding support on this red descending trendline. If we fall below that line on the next test, then this will tell me that price is accelerating to the downside faster then I anticipated. Or to put it another way, I was wrong.
<OEven if we did break to the upside and penetrate through the daily 200 SMA, what will we do when we run into the middle green trendline? As more time passes by, at these levels we get closer to that line. Will past dominant support become future dominant resistance?
<O
On this chart we can see that after $SPXA50 & $SPXA200 have peaked, that prices on the S&P 500 drop significantly.
<O
Feel free to laugh at my Head, Neck & Shoulders. I realize this doesn’t meet the technical definition of a H&S, but I’ve been wrong before so why stop now? Truth be told, if you want to treat this like a full fledged H&S, then our price target would be 835. But I happen to think those pink gaps (the neck) are interesting and if you subtract them from the equation then we get a target of 849.
<O
I’m not sure the 60 minute chart can bounce off its 200 SMA a second time. I’m sort of expecting to see slide-skidding support on this red descending trendline. If we fall below that line on the next test, then this will tell me that price is accelerating to the downside faster then I anticipated. Or to put it another way, I was wrong. <O
Even if we did break to the upside and penetrate through the daily 200 SMA, what will we do when we run into the middle green trendline? As more time passes by, at these levels we get closer to that line. Will past dominant support become future dominant resistance? <O
