Morning Notes – Friday December 1, 2017

• Confirmed Uptrend
• Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%

• A large green candle with almost no upper and lower shadow; three day pattern is a morning star one, albeit, without any decline
• Last week’s pivot point 2594.96; R1=2611.67, R2=2620.93; S1=2585.70, S2=2568.99; R1 was breached
• An up week after two down weeks; third up week in last five weeks and eight in last ten weeks
• Broke above a down sloping flag on April 24 2017;
  • flag-low was 2322.25 during 27-Mar-17 week; shorter flag-pole length is 317.19 and longer flag-pole length is 590.88;
  • 100% extension target of shorter flag-pole is near 2639.41; and
  • 61.8% extension target of longer flag-pole is near 2687.41
• Broke above a down-sloping flag on November 14, 2016;
  • the flag low was 2083.79 during 31-Oct-16 week; the shorter flag-pole length is 202.13 and the longer flag-pole length is 383.71;
  • 261.8% extension target of shorter flag-pole is near 2612.97; and
  • the 161.8% extension target of longer flag-pole is near 2704.63
• Last swing low, 2322.25, was the low on March 27, 2017
• Above 10-week EM; above 39-week SMA and 89-week SMA
• Confirmed uptrend

Daily

• A green bodied candle with no lower shadow and the close was in the upper half of day’s range
• RSI-14 divergence – on October 20 the RSI was 79.65 and the 2578,29, on November 8 the high was 2595.47 and the RSI was 72.50; the index is higher and the RSI-14 is rising too but still below previous high, though nearing it
• Last pattern, a down-sloping flag in June that was broken to the upside on July 13; in August the index declined and tested the broken upper limit of the flag
• Above 20-day EMA but above 50-day EMA; Above 100-day SMA and 200-day SMA
• Pivot Point=2646.42; R1=2658.90, R2=2670.23; S1=2635.09; S2=2622.61; R1/R2/R3 were breached
• Confirmed Uptrend

• Drifting down after making a high of 2658.50 at 12:00 PM on November 30; bouncing off the 20-bar EMA; has mostly stayed above  20-bar EMA since 8:00 AM on November 20
• Trending up since 8:00 Am on November 15 with higher highs and higher lows;
• 14-bar RSI continues to flash divergence – on November 21 the index was at 2600.50 and the RSI was at 75.8, on Sunday the index was at 2603.50 and the RSI at 64.47; the RSI is rising and may make a new high which will nullify the divergence signal
• Sequence of higher highs and higher lows since 10:00 AM on November 2 and since August 29 with few exceptions is reasserted on November 21
• Above rising 20-bar EMA, which is above a rising 50-bar EMA

• At the down trend line from highs; bouncing off the upper bound of a horizontal channel that was broken on November 30
• Broke above a double-top or horizontal channel and achieved 161.8% extension target near 2654.25
• Crossing a flattening 20-bar EMA, which is above a flattening 50-bar EMA

• Envelop and Bollinger Band are mostly moving side ways with a down bias since 6:00 PM on November 30
• The Bollinger Band is expanding since 5:30 AM with price hugging the lower limit; price breached below the lower limits of both, the Bollinger Band and Envelop, at 5:45 AM and is trending up since then
• The Stochastic (9, 1, 3) reached 0 at 5:30 AM and then made a positive divergence at 5:45 AM / 6:00 AM; it reached the over bought territory by 7:45 AM
• Crossing 50-bar EMA which is above 20-bar EMA

1. Consumer Discretionary
2. Consumer Staples
3. Energy
4. Materials
5. Industrials
6. Finance
7. Technology
8. Utility
9. Heath Care
10. Real Estate