Morning Notes – Thursday January 11, 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 doji candle with small lower shadow and smaller upper shadow; a break below will form a 3-day evening star pattern; a break above will resume the uptrend
• RSI-14 divergence is nullifying as RSI is almost at the 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; since then the index has made three very small flags; it broke to the upside of the last flag on January 2
• Above 20-day EMA but above 50-day EMA; Above 100-day SMA and 200-day SMA
• Pivot Point=2745.03; R1=2754.00, R2=2759.77; S1=2739.26; S2=2730.29; S1/S2 were breached
• Confirmed Uptrend

• Futures are moving higher since 4:00 PM on December 29 in steps; regaining that trend after drifting down from 12:00 PM on January 9 to 4:00 AM January 10; forming a broad v shaped pattern
• 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 rising 20-bar EMA, which is above rising 50-bar EMA

• Moving up since 5:30 AM on January 10; near the highs made on January 9; rounded pattern that is sharp at the lowest end
• Emerging head-&-shoulder pattern seems to fizzle out
• RSI-14 declined from a high of 73.3 at 2:00 PM on January 9 to a low of 24.14 at 5:30 AM on January 10; it is rising since then and is just below 65; a break above will re-assert the up trend
• Above rising 20-bar EMA, which is above rising 50-bar EMA

• Bollinger Band (20, 2.0) has been moving up 10:45 AM on January 10
• The band contracted from 3:15 AM to 6:45 AM;  BW dipped below 0.10 at 3:15 AM and came above it at 7:00 AM
•  during the Asian session and started to expand at 2:15 AM; price was hugging the lower band till 7:00 AM
• MFI-14 declined from a high of 96.12 at 7:45 PM on January 10 to 26.53 at 5:15 AM with once bounce that found resistance at 80; it is ris1ng since 5:15 AM and is just above 50
• The Stochastic (9, 1, 3): %K declined to 7.14 at 5:15 AM the rose to 100 at 6:15 AM; it made a divergence at 7:15 AM and now has fallen near 50

1. Finance

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