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Wednesday, February 26, 2014

2/25/14

Markets were largely flat on Tuesday, with some very annoying price action. We ended up in the 1850's again on the S&P, but only to about 1853.

Lately, the strategy I've been employing has been my own attempt at eyeballing pivot points, more or less. I've now decided to use the 5-point system and see how it works out. The charts below have the levels on them, and I will probably be keeping the pivot point analysis to Weekly, Monthly, and perhaps Daily time frames due to the speed at which I trade.

The levels I have come up with so far, aren't too far from what I've guessed at, but I'm glad to have a more grounded approach.

Interestingly, the weekly chart with the monthly levels on it suggests we are heading for monthly R2, in the 1880's. Although, the daily chart makes the short term look a little less optimistic, so maybe 1858 was all we get this month.

S&P 500 Daily Chart

Weekly Pivot Points


R2 - 1859.03
R1 - 1847.64
PIVOT - 1836.11
S1 - 1824.72
S2 - 1813.19




S&P 500 Weekly Chart

Monthly Pivot Points 

R2 - 1881.68
R1 - 1832.13
PIVOT - 1801.29
S1 - 1751.74
S2 - 1720.90




Tuesday, February 25, 2014

2/24/2014

Monday finally saw the S&P 500 break the elusive 1850 level. The catch, however, is that Monday's close was below this level - however, that still makes for an 11 point gain.

It's definitely easy, and somewhat rational to consider the potential that this is still a topping pattern. However, considering how strong 1850 has been, and how long trading took place above it, I think it was a bullish symbol. The S&P daily chart looks like a completed bull flag.

I'm bringing my next key resistance down from 1870 to 1865, as the weekly bollinger band is now at this level. Looking at the hourly, daily and weekly cycles, none can really be called overbought, and the super-small time frames are pretty much oversold.

The whole week really comes into play here. That chart will look very bullish if this week closes above 1850. I'm expecting we open above that on Tuesday.

S&P 500 Daily Chart


S&P 500 Hourly Chart