Triple Index Key Level Planning to End the Week

Sep 18, 2015: 12:44 PM CST

After the volatility and retracement, what levels are important right now in the S&P 500, Dow Jones, and NASDAQ?

Let’s pinpoint these pivot levels and plan trades accordingly.

We’ll start with the S&P 500:

This week saw a bullish breakout surge the indexes into their upper resistance targets.

For the S&P 500, the first target was 2,000 and then 2,020 which is the falling 50 day EMA.

Yesterday’s Fed Day resulted in spike-reversals down away from the upper resistance target and now we’re seeing strong bearish money flow take the indexes lower.

For the S&P 500, the two upper levels remain 2,000 and 2,020 while the key lower support focal point is 1,960.

Note the updated trendline levels and the bull/bear price pathways on a breakdown (or future breakout).

Here’s the same picture in the Dow Jones Industrial Average:

A breakout from the symmetrical triangle boosted price toward the underside of the falling 50 day EMA and “Round Number” confluence at 17,000.

From there, price reversed violently yesterday down away from this target.

We’re now seeing a key test of 16,400 – the rising trendline and pivot point from here.

Like the S&P 500, the Dow Jones turns breakdown bearish on a movement away from 16,400 and 16,000.

Otherwise we’ll note a neutral zone between 16,400 and 17,000 accordingly.

Finally, the NASDAQ traces a slightly different pattern:

Unlike the S&P 500 and Dow Jones, the NASDAQ rallied into a Rising Wedge Pattern and also spike-reversed down from the falling 50 day EMA.

Unlike the other two indexes, the NASDAQ failed to break above the 200 day Simple Moving Average which is also a key price pivot from the Great Trading Range of 2015.

Our pivot point for the NASDAQ is simply 4,900 with a lower support pivot above 4,800.

Incorporate these levels – and the breakouts in the future – into your analysis and trading strategies.

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Corey Rosenbloom, CMT
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  1. Sept 18 Breakdown Market Update and Interesting Stock Scan | Afraid to Blog Says:

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