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chartwatchers
May 7, 2016 12:04 PM

S&P 500 - A start of a new daily cycle? Long

S&P 500 index of US listed sharesFXCM

Description

Friday we printed a reversal candlestick on the daily chart. (Hammer candlestick with buillish body)
We turned up from the 50 EMA and closed at the daily maximum with high volume.
The RSI left overbought territory. Notice what did it mean in the past. It was always a start of a new rally.
It's bullish.

At least we are going to test the May 2015 highs. And this time I think we will break it through.

Comment

We have a swing today on the daily chart. The swing traders are on the long side now.
Chart ahs worked off the bad chinese news.

Comment

BOOM!
It was a start of a new daily cycle 2 dayys ago.
This is going to run to new highs now.

Comment

I didn't like today's price action. We gave back half of yesterday's gains.
-0,77% is not horrible but I would've liked to see one more up day before a pullback.
We see what tomorrow brings. If we close below the hammer (2036) I suggest to close positions here.

Comment

Big reversal today.
This is the 2nd bullish pin bar in the double bottom pattern.
Also a key reversal candlestick.
A low risk entry with a stop below 2034.
Comments
Chirurgo
we are always in tune , but this time I think it will go down , because it was drawn up on the third Friday and we broke up in 2040 and in my opinion you do not will go above 2066 or thereabouts , I think short target until fall 1950 and end in 1850 slow but inexorable descent. stop above 2130
chartwatchers
If you short the stock market in the middle of the cycle you are fighting against the central banks unlimited money.
You are foredoomed to failure.
AL_G2
i think youre right CHIRURGO, not going against charts watcher, but there is bearish talk everywhere, the tv networks are actually expecting a good pull back. but he did post a promising chart
chartwatchers
They are printing money. And they are working in cycles.
Forget the news and the TV. We are here to make money.
;)
Trendhopper
Money will be transferred from the overbought precious metals to stocks, its has to go somewhere, so I'm on board with your analysis, great work!!!
seekers36
I agree with the hammer to new highs. But I am a bear after those new highs are achieved.
AL_G2
how sure are you of this chart?.......... there is a lot of bearish talk here in the states as of lately, GDP, job numbers, chinas debt problem, emerging markets. the only outcome to this rally is the fed not raising rates in June because they are not ready, plus Brexit vote is 4 days later, to add the fed is data dependent
Chirurgo
but we medium and long term there are maximum and minimum decreasing
Chirurgo
I stop and alarm in 2110 to 2130
Chirurgo
Sorry for my english :-(
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