The following four charts show a top-down view of the recent breakdown of the S&P 100 Index (OEX). Each candle on the first chart represents a 1-month Options Expiry period, the second chart is a Monthly timeframe, followed by Weekly and Daily charts.
The close-up view on the Daily (fourth) chart shows that, not only has price broken below an intersecting uptrend and downtrend support level, but there are also trend breaks on the Stochastics, MACD, and RSI indicators after negative divergences formed in relation to a triple top on price. What was support has now become resistance. If it holds, we'll see further selling, likely to the lower trendline (which is roughly in line with the 200 sma), or lower. I'll be monitoring these indicators on the Weekly timeframe to see when they reach an oversold status to check where price is relative to the Daily 200 sma and lower trendline, and when any positive divergences begin to form.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. Jan. 13 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. Jan. 13 @ 2:00 pm ET ~ Beige Book Report
* Fri. Jan. 15 @ 8:30 am ET ~ Retail Sales Report & Core Retail Sales Report
* Wed. Jan. 27 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Fri. Feb. 5 @ 8:30 am ET ~ Employment Data
* Wed. Feb. 17 @ 2:00 pm ET ~ FOMC Meeting Minutes
*** Click here for link to Economic Calendars for all upcoming events