Saturday, 19 March 2016

Dow and NASDAQ 100 charts suggest caution on any near term S&P 500 bullishness

The S&P 500 on Friday pushed through the parallel trend line resistance that was my line in the sand for a near term bearish stance, as shown on the weekly chart below. So, is it time to turn bullish? The short answer for me is no, at least at the time frames I trade. The remainder of this post will provide a longer answer.

S&P 500 weekly chart. Up through blue parallel trend lines.


When there's a possibility that I should change my stance on a market, I like to have a close look at correlated markets, in the S&P 500's case, I like to check the Dow and the NASDAQ 100.

Daily chart of the Dow suggests it is forming a triangle, and is near an important test of trend line resistance. If the triangle call is correct, the trend line test would be followed by a decline in wave E.



NASDAQ 100 daily chart. Weak, by which I mean, relatively weak. If the NASDAQ is not leading the way higher, it's often getting ready to lead the way lower.



NASDAQ 100 weekly chart reinforces the view of the daily chart. This market is relatively weak, nowhere near the highs of 2015.



I'll finish with the S&P 500 daily chart. Time to be watchful. Keep a close eye on the Dow too.



Silver showing bearish false breaks at multiple trend lines and time frames

Weekly



Daily



Worth mentioning here that right now I don't have a clue about Gold, so won't post charts for it. Had it on a string for some months. I'll see it clearly soon enough, I'm sure.

AUD/USD 7.x year cycle low pushes market back up through old TL support


EUR/USD rallying from support at 30 year old up trend line