Can the long term resistance hold?

HOOOOLD

we must hold below 1085 on SPX or bears will be in trouble.

weekend charting pt1.

CHOP CHOP CHOP

Another week or so and we're back to where we started, DJI above 10k, and S&P back above 1060. However, the signals are no longer clear, and although we have confirmation that the rising wedge has broken down, we are retesting the bottom trend and may even make an attempt at the top of the bear channel again.

Here are a few charts I've been watching.

SPX

As mentioned, we broke down with volume and strength, and a retest (but not break) above the blue line will be a good short entry.

DJI

We've been operating in a pretty clean ascending channel, and the bounce this week respected the trendline. There are no clean bearish signals on the dow, so keep watching for weakness at the blue and confirmation of breakdown when if we break green.

XLF

The financials couldn't hold that minor support line this week and have made a lower low. This is bearish and may lead the market downward. Watch for the narrow downtrend to hold.

NDX

Tech may have double bottomed earlier, but we're in a historically range of congestion and resistance. If a right shoulder is formed here, the H&S should at least resolve to test the blue line.

TRAN

Transportation index looks like a clean double top has formed. Note that this is the first time a lower low has been made since March. Wait for a lower high and then follow the gently sloping downtrend for trade signals.

CONFIRMATION

Today confirms the bullish trend since March broken. SO MAKE LIKE A TREE AND SHORT STOCKS.

OH DEAR

I did a touchup on the top trend line this weekend and this is what I found.. a strong upward move will invalidate my SPX bear channel.

Quick Look at DJI

Log Scale


Without Log Scale

Patience

two more weeks and you will see rejection at BLUE and may then short your brains out.

UPDATE!

Only a tiny bit left to go.

SP500 CHART

Sorry, work has had me tied up for almost 3 weeks now, but I finally have a chance to update today. The channels are working like a charm for the S&P500 chart, and the rising wedge formation is about to reach it's apex within 3-4 weeks.



Here is a zoomed out view.

Watchlist the next few days

MGI - One of my favorite charts. Chart is slowly becoming parabolic, and most of the lower resistances have been cleared. A strong upward move may be in store very soon, if the parabolic trend continues.


FIG - Another interesting chart. We have broken into the established 'bear' channel (green), and should be able to touch the top of that channel in a few weeks, at least around $7. the $5.50 level has been broken recently, which should encourage more buyers to come in. Additionally, the rising wedge should result in an upward breakout.



KKD - A giant flag can be seen, but nested inside is a smaller flag that looks like it may breakout very soon. Daily trading volume is light, but be on watch for a strong move.


Other misc charts for my own reference
FBN


GAP


AVNR


CRGN