Directional Analysis

So far nothing has changed, we keep being trapped in this consolidation area where the markets have being bouncing in for the past two months.  I would like to see some strength from the Financial sector and maybe some strength from the leading high moving stocks like Apple, Amazon, Google to name a few. Today is the end of the month and the end of the Third Quarter (for some companies the end of their fiscal year) which means money managers may be waiting on the side lines before they start the buying next week. Also the Quarterly reports are starting and like many people know, Fundamental Analyst are looking for the numbers to come out to decide what sectors are showing the most strengths. Finally, Gold is looking like it is done going down, it’s hitting against this two year uptrend line which is acting as a support. I will be watching this uptrend line very closely and some of the other technical tools and I will make a video update on where I think Gold will be heading for the next 12 months.

Until the next update, Stay alert, Stay Alive!

The Area of support was tested yesterday and over the night trading. This Support Area (like the name suggests) is an area where buyers come in and start buying anything and everything creating a support for price and moving the market higher.  So far this area is working and is coinciding with an uptrend channel I have drawn in the weekly charts. I do believe the selling has been exhausted and we will see higher prices next week, but like I point out on the video we have to resolve this are of consolidation the market has been trapped in for the past couple of months.  Once this consolidation resolves (in either direction, I believe to the upside) we will see a movement that will last to the end of the year.

Yesterdays Fed announcement was a complete bust.  Some think that the announcement was already priced into the market, and since there wasn’t anything new it was sell the news.  To me, once I saw the support area taken out, I knew the market makers will push the market lower.  Now the next area of support will be highlighted in the video and from what I see premarket we are starting to bounce at that area.  Technically, nothing is broken yet and I will be looking for this area of support to hold giving some nice positive convergence to the Oscillators. The close today will be critical, if for some reason the market takes out the support areas I highlighted in the video and close under those areas we might be seeing some follow through on the selling tomorrow.  I am not convinced this is a continuation to the downside, but that may change by the close. So for now, watch out for the volatility and stay objective until the technicals say otherwise.

The S&P 500 Futures did exactly what I had talked about on the previous video. The back test to the down trend line and support area was an area of confluence even though the markets finished lowered yesterday.  Today we can see the push to higher prices with volume following.  The Dollar Index is still in a consolidation area as well as Gold, but the soon the consolidation area resolves we will see some massive moves. Stay tune to see what the Directional_Analysis of these will be.

In this video I show a Candle pattern and explain what Support and Resistance look like and how they work. The Markets showed very bullish signs last week and we have a line in the sand to go by for this week coming up. I ended the video showing a chart of the US Dollar index, but I will expand on it on my next update along with some other charts that will support my analysis. Have a great week everyone!!!