The ES has rocketed (which is appropriate, given the missile threats) higher lately, and we’re getting very close to the underbelly of that broken trendline. Umm, if the market wouldn’t mind, this would be a pretty good place to slow down and reverse.
A week ago I commented on my SPX hourly chart that the obvious target for this move was falling channel resistance and SPX finally hit that at the high yesterday. After the confused mess of the last five days of trading that at last gives a clear setup here.
This falling channel is a likely bull flag which on a break up would have a minimum target at a retest of the all time high. The rising wedge from the March low has already retraced over 38.2% of the wedge so SPX could break up now into that retest. The open 60min buy signal likes that option and arguably so does the falling megaphone that has formed on the RSI 14 over the last few days. On the other hand a reversal here could well still reach the ideal 50% retracement target at 2405 that I gave at the end of July. Channel support is now in the 2395 area and a little low for that but there are a couple of alternate falling wedge support trendline options that could deliver a low close to that number. (more…)
An analysis of Amazon (AMZN)’s charts on Monday identified a near-term potentially bullish formation juxtaposed against a tricky, potentially dangerous intermediate-term set up.
From a near-term perspective, AMZN on its hourly chart appeared to be putting in a “falling wedge”-type pattern (the opposite of a rising wedge), which usually represents a trend-ending formation. In this case, it would be the conclusion of the correction off of the July 27 high at 1083.20 to Monday’s low at 942.25.
Often times, the end of the falling wedge will come in the form of one final down-spike beneath the lower wedge boundary line, into marginal new reaction low territory, say beneath 940, into the 936 area, followed by a vicious upside reversal spike and the initiation of a powerful rally that will propel AMZN above 953-960 resistance to confirm the turn. From a near-term perspective then, AMZN should be getting ready for a tradable upmove. (more…)
Today can be summed up in one image: