I have had a few emails over the last two weeks requesting I give you a Hawkeye analysis of the S&P – so here it is.
To set the stage for the Daily chart, let’s look at the monthly and weekly charts and see what they are telling us. The monthly chart has entered into congestion, based on a Pivot high from three months ago. The weekly chart is also in a wide congestion zone, with the high at 2117, and the low at 1821.75. Current price is closing within the previous wide-range bars, which is what we expect to see.
Now to the interesting part.
This week is a big week. Wednesday begins a two-day FOMC meeting, and the markets will be waiting and choppy till the announcement. So lets look at the chart.
The magenta down arrow shows overhead resistance. The first cyan up arrow shows the Trend line supporting the market. The second cyan up arrow shows the Trend line on the volume, showing a buying volume profile has started over the last three days. The red arrow pointing to the Roadkill indicator, set to three days, shows no demand volume either up or down. The red arrow on price shows the Trend dot is flattish, showing congestion parameters, Wednesday’s pivot high and Thursday’s phantom pivot low.
With news later this week, no swing or position trading till that is announced. Remember you are trading risk. However, all will be revealed when the magenta arrow line is broken or when the cyan up arrow line on price is taken out. Volume is showing an upside bias at the moment.
Now, all of this (and much more) is demonstrated in our FREE training room every Wednesday at 9am Eastern, by my colleague Randy Lindsey.
So, I cannot encourage you enough to come along to the Wednesday room.
Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!
[The cyan and magenta arrows are included for illustration only and do not form part of the software]