Morning Notes – Friday September 21, 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 September 14 was a green candle with almost no upper shadow and small lower shadow; closed above previous week’s high
• Last week’s pivot point=2893.35, R1=2919.93 R2=2934.87; S1=2878.41, S2=2851.83; S1/S2 pivot levels were breached;
• An up week following a down week; 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 2639.44 and the 161.8% extension target near 2835.46 are achieved; the 261.8% extension target is near 3013.72
  • 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

Daily

• A green candle that gapped up at the open and did not close the gap; small upper shadow and no lower shadow; all time intra-day and closing highs
• %K above %D; above 90
• Above 20-day EMA, above 50-day EMA, 100-day SMA and 200-day SMA
• Uptrend

• Moving higher since 8:00 AM on September 11 in steps;
• Broke above a horizontal channel – more like a cup-with-handle pattern – at 6:00 AM on September 20; the height of channel is 49.50 points and the 61.8% extension target near 2948.00 was approached during Asian session; the 100% extension target is near 2967.00
• RSI-9 near 75 after reaching a high of 90 at 2:00 AM
• Above 20-bar EMA, which is above EMA10 of EMA50
• Bias: Up

• Moving higher after breaking above a sideways – from 11:00 AM on September 18 – at 7:00 AM on September 20;
• Stochastic 15 made a bearish divergence at 3:30 AM
• RSI-9 is near 58 after reaching78 at 3:30 AM and making a bearish divergence
• At/above 20-bar EMA, which is above 20-bar EMA
• Bias: Up

• Bollinger Band (20, 2.0) is trending higher
• The band narrowed from 8:45 PM to 2:30 AM; expanding since with price first moving along upper band till 4:15 Am and then dropping to the lower band by 5:45 AM
• RSI dropped below 65 at 3:15 PM on September 0; moved between 50 and 65 till 5:15 AM and then dropped below 50;  still above 40
• The Stochastic (9, 1, 3): %K crossed below %D at 4:15 AM from above 90 after making a bearish divergence; crisscrossing %D below 20;below %D at 7:00 AM
• Bias: Up-Side

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