Monday, 27 May 2013

S&P 500 daily and hourly charts suggest that last week's low is key

Daily chart shows that a decline below last week's low would confirm a completed throwover of the recent trend channel, indicating the end of the up trend. If the market stays above last week's low it is likely to accelerate upwards again, perhaps rallying more sharply than it did from mid April.

Hourly chart shows that a move under last week's low would break below a short term support shelf.

Dow Jones Industrial Average showing neat trend channels on weekly, daily, hourly charts

Three trend channels of varying length. Three throwovers indicating that up trends are complete. All charts are arithmetic scale and include after hours trade. Mostly I post log scale charts, but whichever scale shows the clearest trend channels is the one to use.

Weekly chart shows the trend channel formed since late 2011

Daily chart show the trend channel formed since late 2012

Hourly chart shows the up trend channel formed since mid April

Thanks to Robert Prechter's latest Elliott Wave Theorist for opening my eyes to the channels I've shown on the weekly and daily charts, and causing me to dive in to the hourly.

Has the Nikkei peaked for 2013?

Has the Nikkei peaked for 2013? Rhetorical question. Nobody knows. Though the monthly chart suggests the big picture trend is still down.

Daily chart shows a completed throwover of the recent up trend channel. A bearish edge. Needless to say a move below the nearby up trend line would be another bearish edge.