Morning Notes – Tuesday January 9, 2018

• Confirmed Uptrend
• December 2017 closed higher; index has been higher for the nine straight months; it has only one down month, March 2017, since October 2016
• Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%

• The week ending on January 5 was a large green candle with almost no upper and lower shadows; the change was +2.6%, which is the largest change since the week closing on November 11 2016, almost thirteen months ago
• Last week’s pivot point 2722.99; R1=2763.61, R2=2784.08; S1=2702.52, S2=2661.90; R1/R2/R3 were breached; last all 3 resistance levels were breached was the week closing on December 1 and following week ne pivot levels were breached
• An up week;  fourth in last five weeks and seventh 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 near 2639.41 is achieved; and the 161.8% extension target is near 2835.46
  • 61.8% extension target of longer flag-pole near 2687.41 is achieved; the 100% extension target is near 2913.13
• 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 near 2612.97 is achieved
  • the 161.8% extension target of longer flag-pole near 2704.63 is achieved; the 261.8% extension target is near 3088.34
• 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 real body candle that closed near the high; small lower shadow
• RSI-14 divergence is nullifying as RSI is very close to previous high
• Last pattern, a down-sloping flag in June that was broken to the upside on July 13, 2017; 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=2744.61; R1=2751.61, R2=2755.52; S1=2740.70; S2=2733.70; R1 was breached
• Confirmed Uptrend

• Futures are moving higher since 4:00 PM on December 29 in steps; drifting mostly sideways since 6:00 PM on Sunday
• Broke above a horizontal channel on January 3; the 161.8% Fib extension target near 2729.50 was achieved; the 261.8% extension target near 2747.75 was achieved on January 7
• Sequence of higher highs and higher lows since 10:00 AM on November 2 and since August 29 with few exceptions; reasserted on January 3;
• Above 20-bar EMA, which is above 50-bar EMA

• Moving sideways since 6:30 PM on January 7;
• Broke above an ascending triangle on January 4; the 100% Fib extension target near 2728.75 was achieved; the 161.8% Fib extension target near 2747.50 was achieved; the 261.8% extension target is near 2778.00
• Broke above a symmetrical triangle / pennant at early Asian session; the 100% extension triangle break target is near 2733.00 and 161.8% extension target is near 2737.75; the Flag/pennant break targets are near 2742.00 and 2755.00
• RSI-14 crossed below 40 on January 8 and then rebounded just above 65; it is hovering around 65 since 3:30 AM
• At/above 20-bar EMA, which is above 50-bar EMA

• Bollinger Band (20, 2.0) has been moving sideways 6:00 PM on January 7
• The band contracted during the Asian session and started to expand during early European session; it is contracting since 7:00 AM
• MFI-14 rose to 95 at 4:00; it declined from that level but is finding support just above 50
• The Stochastic (9, 1, 3): %K bounced off 20 at 6:30 AM; made a high of 100 at 1007:45 AM; now crossing below %D at 8:00 AM

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

1. Energy
2. Utility