Here's AI's take on the current layout.
AI:
The chart you provided represents the S&P 500 (ES) on an hourly timeframe, with multiple technical indicators, trendlines, and channels overlaid. Here's a breakdown and some thoughts for day trading purposes:
Key Observations:
Trend Analysis:
The price is trading within an upward-sloping green channel, suggesting an ongoing bullish trend.
There are multiple support and resistance levels (marked in red) intersecting the price, indicating areas of interest for potential reversals or breakouts.
Moving Averages:
Several moving averages (MA50, MA60, etc.) are displayed. It seems that price is consistently above these moving averages, reinforcing the bullish bias.
Watch for interactions with these moving averages during intraday pullbacks—they often act as dynamic support/resistance levels.
Momentum Indicators:
MACD: It appears to be in a consolidation phase after a bullish crossover. Monitor for a potential divergence or renewed momentum.
True Strength Indicator (TSI): Suggests a cooling-off period but is still above zero, which generally supports bullish conditions.
Fisher Transform: Oscillating at the top, indicating potential overbought conditions.
Support and Resistance:
Immediate resistance is around 6099.8, with potential challenges as price approaches the upper trendline of the green channel.
Support levels exist at 6035.3, 6007.7, and 5932.2, which can be used for stop-loss placement or as potential bounce zones.
Volume and Structure:
While the chart lacks explicit volume data, the structural movements show a mix of trending phases and consolidations. Expect breakouts when price compresses between key levels.
Day Trading Strategy:
Trend Continuation: If the price remains within the green channel and above key support (e.g., 6035.3), look for intraday pullbacks to MA or channel support for buying opportunities.
Breakout/Breakdown: Watch for a breakout above 6099.8 for a quick momentum trade higher. Conversely, if the price breaks below the lower green channel boundary, shorting opportunities may arise toward the next significant support.
Divergence Monitoring: Use the MACD and other momentum indicators to spot divergences (e.g., price making higher highs but indicators weakening). This can signal an impending reversal or consolidation.
Risk Management: Place stops just beyond the nearest support/resistance and keep position sizes small to account for the choppiness near heavily traded levels.
As I pointed out yesterday, the degree of extension on hourly oscillators was extreme. That's not just on the one hour bars we normally look at, but all the way out to 5 hour bars. On the other hand, the overnight sleepwalk allowed the oscillators to fall back to the zero line. An upturn from here could be explosive. That's what usually happens when moves start from the neutral zone.
But if the indicators drop into negative turf, then we could be at the beginning of something far different from the recent straight up norm. We'll just have to see how the first half of today goes. Maybe we'll know something by 2:30 turn time.
For now, the hourly chart of the ES, 24 hour S&P futures shows trend spport holding at 6075. If they break that, then we can think about potential reversal. Otherwise, we gotta go up and test the high of 6100 before anything happens. Unlock Market Trends: S&P 500 and Dow Analysis for January 2025
For perspective, here are the 5 hour bars.
Moron the markets:
Unlock Market Trends: S&P 500 and Dow Analysis for January 2025 January 21, 2025
S&P 500 Outlook: Key Levels and Cycles for January 2025 January 21, 2025
Maximize Your Trading Edge with Weekly Technical Chart Insights January 20, 2025
Top Swing Trade Picks for Subscribers- Jan 20, 2025 January 20, 2025
Gold Trends and Insights- Subscriber Report, Link CorrectedJanuary 20, 2025
Primary Dealer Stress: Big Risks Delayed, Not Denied, in the Treasury and Equity Markets January 15, 2025
Macro Liquidity Trends: Insights on Repo, Treasury Actions, and Market Dynamics January 10, 2025
Withholding Taxes Surge – Could This Signal a Market Breakout? January 7, 2025
If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam folder.
2 hour bars, just as bad. 4 hours scary. 5 hours, see for Yossef.
This is total bullshit, but trade what they give you. Unlock Market Trends: S&P 500 and Dow Analysis for January 2025
CRK. Now there's a blast from the past. Back in my day, CRK was Campbell Red Lake, one of the hottest gold miners in the late 70s as gold was surging to the then record of $810.
Here's a chart of CRK today for your listening and dining pleasure. I present widdout comment.
2 days ago, the screens spit out PG on the buy side. I looked at it for a trade and put it in my watch list but said, nah, too stodgy. It never moves.
Fucker gapped up 5 bucks today.
What the AI allows does for me is write programs to run the screens that pick up ideal Hurst setups. Obviously, not all of them move or do the right thing, but it is screening every active stock and finding the setups that are most propitious.
That's scary.
I looked away for a minute and it has filled the gap. In other words, it went from a 15% gain to a loss. Of course, I bought it for the long term. I'll just wait for it to come back.
🤣🤣🤣
That chart that was up 15% is starting to look like a fungoo finga pattern. Or is this just a return to the scene of the crime (standard pullback after breakout?) Gotta be quick reactor with this high volatility crap.
