S&P500 Daily Analysis for Jan 24th
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- 1st time frame up trend.
- Japanese candlestick White Marubozu pattern - denotes a very bullish market.
- The market closed with the bulls keen, strongly in control and committed.
- Nice range extension signifies eagerness of bulls.
- The resistance area, marked in orange, which had been tested on at least eight previous occasions, was convincingly taken out today - very bullish.
- Triple MAs are BULLISH.
- MACD histogram is ST bullish.
- ST volatility is very close to ST resistance, marked bright green. Even though it's a minor level, we could see the current strong up swing stall briefly. There was a lot of effort exerted in taking out the strong resistance, so a brief pause would not surprise. This could go either way. In the end though, it would be a brief pause because the dominant cycle in ST volatility will soon re-establish itself.
- Volume increased slightly as the market made new swing highs, supporting the current up swing. Noticeably, there is now a possible setup for a volume divergence.
Labels: SP500, SP500 daily analysis
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