How the Weekly SP500 Chart Helps Our Game Planning

Jun 16, 2015: 9:36 AM CST

The S&P 500 and Dow Jones face a critical “support test” level, and our trades will be based on whether or not buyers once again uphold the support level with an influx of money into the market here.

The Weekly Chart gives us a crystal clear level from which to plan our next series of trades.

Let’s highlight the trend and the key pivot level on which to focus for the moment:

First, start with yesterday’s update post “Buyers Defending Key Dow and S&P 500 Levels.”

To that, add the trend and support level above – seen on the Weekly Frame.

With the trend remaining bullish, momentum and volume are weakening as buyers once again test a floor of support.

Our current pivot level is the zone of the rising 20 week EMA, currently positioned near 2,085.

Let’s zoom the perspective to see this level and plan accordingly:

A super-zoom perspective shows the 2,085 level and a series of weekly closes above this level.

Note the two exceptions:  the October sell-swing and the January 2015 ‘nip’ under this level.

In the case of October, price fell all the way to the target of the rising 50 week EMA and 1,900 confluence.

That’s the type of simple logic we’ll apply here:

Should buyers again defend this level with money into the market (buying on the retracement to support), then we’ll play swing and intraday bullish trades as price moves UP AWAY from 2,070 and 2,080.

However, if “this time is different”, we’ll look to join the short-sellers (bears) on a trigger break under 2,070 which could set in motion another liquidation (sell swing) toward the rising 50 week EMA near 2,040.

Keep the weekly chart in mind as buyers and sellers battle each other to hold – or break – this pivot level.

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Corey Rosenbloom, CMT
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2 Responses to “How the Weekly SP500 Chart Helps Our Game Planning”

  1. Cockbain Says:

    Weekly charts definitely help us a lot, but if we want to succeed then we should look at lower charts while even higher, I am lucky that I am having a superb broker like OctaFX, it has brilliant cTrader platform where I get all the latest charts and updates, so that really helps me trade well while it’s also especially develop for ECN trading, so that really helps us trading well due to directly connected to global banks, so we get excellent chance.

  2. Shakil Says:

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