All charts used this morning were ones that I did at the weekend for the Trader’s Chart Service at theartofchart.net.
The NQ falling wedge that I identified on Wednesday last week defined the rest of the week, with the high on Wednesday night, the low on Thursday and the high on Thursday night, before the 70% bullish falling wedge broke up on NFP on Friday and retested the break on Friday afternoon. The obvious next target is a retest of the all time high, bolstered by the likely failure of the H&S on NQ and of the double top patterns on both ES and TF. NQ Sep 60min chart:
SPX recovered back over the 50 hour MA and retested it as support on Friday. NDX did the same. As long as those hold as support the short term uptrend is solid. The 50 hour MAs on SPX and NDX closed Friday in the 2173/4 and 4781/2 areas respectively. SPX 60min chart:
The one chink in the bull case today is that SPX closed Friday under the daily middle band, though NDX closed back above and RUT never broke below it on a closing basis. That’s not a big chink though, and with the bollinger bands this compressed it is not as important an obstacle as usual. SPX daily chart:
The bears had their window and didn’t do much with it. The bulls now have a window for the next couple of weeks and we’ll see if they can do better, though there is a lot of resistance not far above, and trendline resistance on SPX, if respected, won’t allow more than 2230 by the end of September. We’ll see how that goes.
Stan and I did our monthly public Chart Chat on Sunday, and if you missed that you can find the recording for that here. Stan and I are launching a new service at theartofchart.net next week doing the charts for AAPL, AMZN, FB, NFLX & TSLA. If you’re interested then you can find the details on this page here, and we’ll be doing a free public webinar on these next Monday after the close as we launch the new service. You can register for that webinar on the same page.
