Color Structure and Trend Charts of US Stock Market June 23

Jun 23, 2015: 2:41 PM CST

Let’s take a moment to update our “Color Structure and Price Trend” charts of our big three US Equity Indexes as we push toward the end of June 2015.

As usual, we’ll start with the S&P 500 Index:

When we refer to “Price Structure,” we’re referencing the specific series of highs and lows that builds a trend.

Note swing highs and swing lows along the way.  It helps to connect these with hand-drawn trendlines.

The color-coded price bars (based on Average True Range) help us quantify what is – and what is not – a swing.

In addition to studying the trend, we want to note the periods of trending (expansion) and contraction (ranging) phases.

Right now, price is in a clear uptrend but in the context of a sideways consolidation at the highs.

Unless we see a violation (break) under the lower rising trendline (which only happened once in October 2014), the odds (and trend structure) would favor a continuation of the uptrend in place.

The same logic applies to the Dow Jones and NASDAQ as highlighted below:Dow Jones Industrial Average (Daily):

NASDAQ Composite (Daily):

The NASDAQ has been the strongest trending index and just recently broke to new all-time highs.

Note the volatile (wide range) periods of early 2012 and mid-2014.

Otherwise, price has traded within stable rising bullish trendlines as drawn – which is the case today.

It’s helpful to quantify structure which serves as a pure way of viewing price without overlaying indicators.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

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).

2 Comments

2 Responses to “Color Structure and Trend Charts of US Stock Market June 23”

  1. aayushi Says:

    TO GET BEST CASH TIPS Check CASH TIPS

  2. Danial Says:

    It is extremely tough to decide where things are going next for this, as it’s pretty confusing and with major news coming in next few days, it is important that we are more careful with things. I trade with OctaFX broker and they are a really brilliant company to work with, as I get all great support especially with their expertise, as they provide us reports of daily market, so that helps me staying calm and relax, it is not something possible without such help.