The December Color Ribbon of Resistance Chart

Dec 15, 2015: 12:12 PM CST

What “Wall of Ribbon Resistance” must the stock market clear?

Let’s update our special “Color Ribbon” Chart of the S&P 500 and note the overhead wall of resistance.

Here’s the S&P 500 “Color Ribbon” Grid:

The chart above plots the current S&P 500 with multiple moving averages of three colors:  Short-term (blue), Intermediate Term (green), and longer term (red).

We can view price in a trend but we can use moving averages – and Moving Average Ribbons – to help us.

Note how the orientations adapt with price movements as the trend shifts and retraces.

For the moment, we’re focusing our attention on the “Wall of Ribbon Resistance” the S&P 500 is retracing into at the moment.

Here’s a closer, zoomed-in perspective of the levels:

Compare both charts – the perspective shows that the 2,050 to 2,070 S&P 500 Index Level is blanketed by ALL THREE timeframe moving averages.

The three longer-term averages overlap from 2,055 to 2,065 while the Intermediate and Short-Term averages also overlap this region.

The last time we were at similar levels like this was around August 2015, though price was at that time above these levels.

Use this chart along with your other strategies – it’s just another way to see hidden support and resistance pockets.

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).

1 Comment

One Response to “The December Color Ribbon of Resistance Chart”

  1. "Wall of Ribbon Resistance" Says:

    […] By Corey Rosenbloom […]