Morning Notes – Thursday August 2, 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 July 20 was a green candle that broke above a doji candle of previous week; the real body smaller than the upper shadow
• Last week’s pivot point=2820.66, R1=2846.19, R2=2873.55; S1=2793.30, S2=2767.77; R1/R2/R3 pivot levels were breached;
• A fourth up week in a row; fourth in last five weeks and eight in last ten weeks
• Broke above an ascending triangle but retraced back to its upper limit; 100% extension target is near 3070.00 level
• 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; Last swing high, 2872.87, was during the week of January 22, 2-018; the low since the last swing high is 2532.69 during the week if February 5, 2018
• Above 10-week EMA; above 39-week SMA and above 89-week SMA
• Uptrend resumed

Daily

• A red spinning top with small upper and lower shadows
• %K is below %D after making a bearish divergence
• Above 20-day EMA, 50-day EMA, 100-day SMA and 200-day SMA
• Uptrend

• Downtrend since July 25 2:00 PM high of 2849.50;
• RSI-9 moving down since 12:00 PM on July 31 from a high of 70.92; just below 30
• Below 20-bar EMA, which is below EMA10 of EMA50
• Bias: Side-Down

• Broke below a horizontal channel 1t 11:30 PM on August 1; the 100% extension target near 2796.00 is achieved; the 161.8% extension target is near 2788.00
• RSI-9 trending down from a high of 61.81 at 10:30 AM on August 1; rising since 6:30 from a low of 20.17
• Below 20-bar EMA, which is below 50-bar EMA
• Bias: Side-Down

• Bollinger Band (20, 2.0) is moving down since 9:30 PM on August 1
• The band expanding since 11:30 PM; price moved along the lower band till 6:45 AM; now at the mid-level;
• RSI mostly between 40 and 20 from 11:15 PM to 8:15 AM; rising above 40 but still below 50
• The Stochastic (9, 1, 3): %K crossing below %D from above 90 at 8:45 AM
• Bias: Down

1. Technology
2. Heath Care
3. Real Estate

1. Consumer Discretionary
2. Consumer Staples
3. Energy
4. Materials
5. Industrials
6. Finance (unch.)
7. Utility
8. Telecom