My preferred wave count is similar to the idea I posted some weeks back on the DAX and that I suspect the SPX is inside a 5th wave for an ending diagonal so likely to chop higher into Jan-Feb period next year before a meaningful high. It would need a seriously strong break below the 200DMA on the SPX before I would switch to an alternative bearish idea, whilst this market continues higher I still prefer the bullish option over the bearish option.
Although I am certainly no perma bull and calling for SPX 2000 or anything like that, recent price action over the last few days suggests the market is simply correcting the advance from the Nov 2012 lows and likely to push higher once the correction has finished.
When you look at other US markets we can clearly see the same sort of shape, especially markets such as the NYSE. The last decline from the September 2012 highs was a 3 wave decline as we can clearly see the NYSE is pushing higher as I suspect it would, but is lacking the new high it needs to complete its idea.
Nifty future is trading 5972 around with high of Friday 5982. You will see here great struggle for nifty future. Last day of daily candle of nifty future is very dangerous for nifty direction. As can be seen below chart of the Nifty future is struggling to crossover of the 6000.
Recently, volatility has been pretty choppy, but the Volatility Index is not showing considerable fear. Just watch the chart and forget all…
You can see in daily chart, there are small support for nifty future which is 5925 around… Short Seller can start book profit over this area. So this is 1st target of Short Seller of NF.
You can also observe strong long-term trend crossover? Single-Daily Chart bullish for nifty 6019-6068.
Just, watch closely, You can trade on this chart…
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Engulfing Line (Bullish) Chart Pattern
Effect of Island Top Pattern
One Exhaustion Bar (Bullish) indicates a possible reversal of the current downtrend to a new uptrend. This pattern is definitely an sign of the economic instrument’s SHORT-TERM outlook. One and also two-bar patterns echo changes in investor psychology that have a very short-term impact on top of future prices – typically less than ten bars. Often the immediate influence is trend exhaustion followed by reversal. For investors looking for evident entry and leave points, these patterns provide well. They are really normally not appropriate because signals for long-term investors unless viewed as month-to-month bars.
Story
The Engulfing Line (Bullish) occurs whenever Real Body for a price tag bar is larger when compared to the Real body for the preceding price bar. In addition, for a good Engulfing Line (Bullish), the Real Body of the past session needs to be RED (close less than open) plus the Real Body of the second session needs to be GREEN (close above open).
Function that Supports The difference within the dimensions of they Real Bodies can feel a important signal of the significance of the Engulfing Occupation. If in case the Real Body of the previous session is substantially smaller when compared to the Real Body of the following session then the pattern must be considered more significant. The better the size difference the even more significant the formation.
The greater and additionally higher up the inbound trend that prospects into the Engulfing Occupation, the even more significant the pattern. Seek out heavy volume in the following session. A noticeable rise in volume from all the previous few sessions is a strong indication that it pattern is a bit more significant.
If in case the following session “engulfs” several session’s Real Bodies this excellent pattern is really significant.
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Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
The TV pundits all contribute their fair share to the conditioning process by clouding thoughts of any market player. To the extent that all ambiguities presented will bait investors to thinking IRRATIONALLY! Like, waiting for a 1000 point rally to emerge once the fiscal cliff is resolved.
Fortunately, underneath all the headlines a visual and graphical interpretation can be mathematically extracted. It is here, in these very charts, where you will find an answer that illustrates what is really going on, so that us technicians can observe, scrutinize, and formulate a particular bias.
The information provided does not tell you why, or when, but what!
In this case, ‘the what’ is a bear market rally. These particular rallies are very sneaky and most convincing, but can be properly identified when using the right tools.
For starters, a basket of heavily weighted companies, ‘THE NIFTY FIFTYs,’ which offer the bulk in the performance in the averages -all now have chart patterns that cannot sustain the continuation of this advance. Invariably, when volume remains light during an extended window of time, the result is an inevitable sharp collapse back downward to the previous lows or worse, new lows that can no longer support a bull market.
The S&P 500 index is a case in point, which is still in rally mode, and perhaps can continue higher if there is further consolidation. But if only mother market is ever so accommodative to our own expectations.
And it is because of her complexities that make it an impossible arena for perfection. The current rally back is clearly overworking itself to recapture the previous drop in November and rather than guessing where exactly it will end, think of it in terms of direction. The future course of these violent counter trends ultimately end in a scare plunge; and all the pumping in the world cannot uphold the violent cascade of selling pressure that will implode on the masses.
Consider the technical chart below, which projects a disaster waiting to happen, and with only a small chance of one last leg higher before this rally is all said and done.
S&P 500 – Daily Chart
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Island Top Chart Pattern
Effect of Island Top Pattern
An Island Top is a bearish alert indicating a possibility reversal of the current uptrend to a new downtrend. This excellent pattern is a sign of a financial instrument’s SHORT-TERM outlook.
Story
The Island Top takes place whenever the price point “gaps” above a particular price range for a quantity of days, and also then is confirmed once the price “gaps” down below the initial number.
Statistics–Tops Percent of prospering formations – 77% Average decline of prospering formations – 21% Very likely decline – 10% Failure speed – 13% Average for you personally to throwback finalization -8 days
An Island Top Chart Pattern Instance.
An Island Top Chart Pattern Example
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
