Bigger Picture Weekly Chart Update and Level Planning US Stock Market

Jan 15, 2016: 1:16 PM CST

The “Distribution Arc” pattern I highlighted at the beginning of January has indeed played out to the full target levels.

What now? Let’s quickly update our key levels on the weekly chart of the S&P 500, Dow Jones, and NASDAQ at the midpoint of January 2016.

Here’s the S&P 500:

First, take a moment to review my January 7th post “Distribution Trendlines and Arc Targets for S&P 500.”

I highlighted this pattern in more detail for Afraid to Trade members as we shifted our narrative to the bearish/defensive side as January began.

Now, we see the downside “spike reversal” and arc trendline target achieved.  We’ll update our plans and adapt from here.

The S&P 500 had a downside “spike” target near 1,870 which was attacked this morning with the gap.

Further downside selling – and a true Distribution Top – would target the 1,800 level.

Use the current level as key weekly pivot target and play the departure away from this spike low.

See yesterday’s post for additional details on targeting and adapting.

Here’s the Dow Jones Industrial Average:

The downside target for the Dow Jones Weekly “Arc Trendline” pattern was the 16,000 level which also was achieved today.

Like the S&P 500, play the ongoing departure away from this level, be it a bullish intervention bounce (like the prior examples) or else an ongoing collapse down toward 15,500 and 15,000.

The NASDAQ just achieved a similar target:

The NASDAQ completed its “Arc Trendline” pattern down toward the 4,400 level which is a key price pivot as highlighted.

Ultimately if the market continues under this major weekly target, it is likely to continue falling to lower targets including 4,000.

Use our current levels as key objective pivots and plan/adapt your strategies from there on the departure away from this newly achieved target level.

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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Comments
  • Taufees

    At the moment the trend is obviously bearish from that, but still it can turn in blink of an eye, so that’s why we should be really careful with how we do everything. I am trading with OctaFX broker and with them, I am getting daily market news and analysis updates, it is so easy for me to follow and always lead to great results, so that’s why I am able to trade easily and that always lead to achieving high level of success for me.

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