by winston » Mon Jan 01, 2018 1:04 pm
CHARTS
SP500: Closed just below the 10 day EMA, filling the gap higher 9 sessions prior. Volume was significantly stronger than any on the week though still well below average.
Okay, SP500 is testing back on the last day of the year but still nothing severe. The bigger issue are the five rallies up the 10 and 20 day EMA since leaving the 50 day EMA in early September.
That is typically the max number of runs you get and that means SP500 could see some further testing to start 2018. The 20 day EMA is 2663, another 10 points from the Friday close. The 50 day is down at 2620, another 50+ points lower, and that is really where SP500 should go in a more typical technical
move.
DJ30: Faded to the 10 day EMA on the close, higher though still well below average trade. Very much some pre-yearend positioning. As with SP500, five rotations up the 10 and 20 day EMA and due a test lower at least to the 20 day EMA at 24,500. The 50 day is near 23,960, and as with SP500, after this kind of run that is typically where you would expect it to test.
NASDAQ: Dropped to the 20 day EMA on rising but still well below average volume. That makes four tests of the 20 day EMA for NASDAQ since leaving the 50 day in late September. That leaves NASDAQ another rotation to go, but if SP500 and DJ30 sell NASDAQ will likely be hard pressed to rally as they fade unless there is a round of rotation back into techs.
Source: Investment House
It's all about "how much you made when you were right" & "how little you lost when you were wrong"