Traders' Library Blog

Stocata S&P 500 Analysis: December 27, 2014.

Last week I wrote: 
The pressure down beginning of the week, moved as expected the index lower to the S2 pivot support of the month. And from that point, as expected an up move was started. Rather fast and large, coming very close to the previous high. If this is the trading range, there are about 100 points or some 5% tradable. I cannot exclude the long term top projection at 2114, since we are really very close to this target. Because even small volume may move the market considerably this close to the year-end.

The index is making a new top wave 3.20. That makes an unbelievable twenty higher tops in a row! We are reaching the R1 pivot resistance of the month. There is a good chance we will close the year reaching the long term target at 2114, moving to the top of the volatility channel and the R2 pivot resistance of the month. I believe there is a possibility that this top will be reached creating a negative divergence between the index and the SVESRSI indicator. That would be an important sign for a down reversal, at least for a larger correction.

Good health and all the best for 2015!

If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2088.77 on December 26, 2014, there was a profit of 670.61 or 47%.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: December 20, 2014.

Last week I wrote: 
Are we setting the trading range? We have a pullback correction wave 2 down, finding active support on the 50 day moving average. There is some more pressure down for a move to the S2 support level of the month and probably to the 200 day average. Not falling below the S2 level I would expect a new up move to create a trading range. Because we are close to the year-end there may be an effort to keep the index above 2000 and start a trading range from the current low.

The pressure down beginning of the week, moved as expected the index lower to the S2 pivot support of the month. And from that point, as expected an up move was started. Rather fast and large, coming very close to the previous high. If this is the trading range, there are about 100 points or some 5% tradable. I cannot exclude the long term top projection at 2114, since we are really very close to this target. Because even small volume may move the market considerably this close to the year-end.

If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2010.4 on November 21, 2014, there was a profit of 645.34 or 45.5%.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: December 13, 2014.

Last week I wrote: 
Some reaction down on Monday, but closing the week a bit higher at 2075.37. We are still at a historical Fibonacci target. We can expect a move up to the R1 pivot resistance of this month, the upper side of the volatility band and the long term Fibonacci target at 2114. Unless there would be some very bad news, I expect this to be the top for this year, meaning moving in a tide trading range for the rest of this month.

Are we setting the trading range? We have a pullback correction wave 2 down, finding active support on the 50 day moving average. There is some more pressure down for a move to the S2 support level of the month and probably to the 200 day average. Not falling below the S2 level I would expect a new up move to create a trading range. Because we are close to the year-end there may be an effort to keep the index above 2000 and start a trading range from the current low.

If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2010.4 on November 21, 2014, there was a profit of 645.34 or 45.5%.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: December 6, 2014.

Last week I wrote: 
Very small move the past short trading week. We are at the upper side of the volatility channel, a 161.8% historical Fibonacci target and the R1 pivot resistance of the month of November. Indicators are overbought. I assume we are close to a reaction. It will most probably be a rather flat move in a trading range back to the 50 day average. Long term there is a Fibonacci target at 2114 that probably will be reached before the end of 2014.

Some reaction down on Monday, but closing the week a bit higher at 2075.37. We are still at a historical Fibonacci target. We can expect a move up to the R1 pivot resistance of this month, the upper side of the volatility band and the long term Fibonacci target at 2114. Unless there would be some very bad news, I expect this to be the top for this year, meaning moving in a tide trading range for the rest of this month.

If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2010.4 on November 21, 2014, there was a profit of 645.34 or 45.5%.

Sylvain Vervoort   http://stocata.org/