Morning Notes – Wednesday January 24, 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 19 was a small body green candle, a hammer with almost no upper shadow but large lower shadow; the  weekly change was a healthy +0.9% but lower than previous two weeks’ +.26% and +1.6%
• Last week’s pivot point 2796.42; R1=2824.021 R2=2838.11; S1=2782.52, S2=2754.73; R1 was breached;
• An up week;  fourth 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 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

• Confirmed Uptrend
• Small green body with small upper and lower shadows following a large green candle
• Last big pattern, a down-sloping flag in June 2017, 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

• Broke above an Ascending triangle at 8:00 AM on January 22; Low=2769.25, High=2808.50; 100% extension near 2847.75 is achieved in early morning; 161.8% extension target is near 2872.00
• RSI-9 divergence could still happen; at 6:00 PM on January 14 the price made a high of 2787.50 and RSI was 90.39; at 4:00 AM on January 16, the price made a high of 2803.50 but the RSI was at 85.63; at 2:00 AM on January 23, the price made 2842.00 and RSI was at 90.04; RSI has declined to 71.02 in steps but price is at new high
• Sequence of higher highs and higher lows since 10:00 AM on November 2 and since August 29 with few exceptions; under pressure
• Above rising 20-bar EMA, which is above rising EMA10 of EMA50
• Bias: Up

• A symmetrical triangle formed on January 23 and broke to the upside on January 24; High=2844.75 and Low=2828.75; 61.8% extension target is near 2851.75 and 100% extension target is near 2858.00
• Last pattern bullish ABCD or symmetric triangle broke to the upside on January 22; 161.8% extension target near 2838.50 is achieved; 261.8% extension target is near 2867.50
• RSI-14 rising since 6:00 AM on January 23; RSI above an uptrend line
• Above 20-bar EMA, which is above  EMA10 of EMA50
• Bias: Up

• Bollinger Band (20, 2.0) is sloping up since 9:15 AM on January 22 after a brief sideways move during Asian session
• The band contracted during most of the Asian session; then expanded to the upside; then narrowed sideways; and is again expanding to the upside with price hugging the upper band
• MFI-14 is staying above 50 after couple of bounces off its since midnight
• The Stochastic (9, 1, 3): Trending dup after %K made 0 at 6:45 AM; above 90 after a knee to the upside
• Made an evening star between 8:15 and 9:00 AM; 9:154 AM could be a bullish engulfing
• Bias: Up

1. Consumer Discretionary
2. Industrials
3. Finance
4. Utility
5. Technology
6. Real Estate

1. Consumer Staples
2. Energy
3. Materials
4. Heath Care