S&P; 500 Chart - Learn Technical Analysis! Watch how this guy tears the charts apart! - Check here to read our article - http://www.tradingandinvesting4u.com/sp-500-chart-%E2%80%93-learn-technical-analysis/ Follow us on facebook at https://www.facebook.com/Sharetradingmastery For your free cash flow training go to : http://www.tradingandinvesting4u.com/ - S&P; 500 Chart - Learn Technical Analysis Watch how this guy tears the charts apart! Check out our You Tube video at https://www.youtube.com/watch?v=9AtKNuYMDMg S&P; 500 Chart -- Learn Technical Analysis! Today we are going to be looking at the S&P; 500 Chart and I want to teach you some more on how to learn technical analysis. S&P; 500 Chart - Weekly Firstly, we need to remember that it is very important to always begin our analysis on the weekly chart. So, looking at the S&P; 500 chart and really pulling it back so we can see the last couple of years, we can see that we had a strong run up from around August, 2010. We can also notice that if we add a 200 moving day average, the price action actually retreated down to the 200 MA, after that strong run up it had and bounced of it. We can also notice the strong Support/Resistance line at around the 1350 level. It has been in place for a couple of years and the price action has either bounced off it or once it has broken through, has really struggled to stay above it and retreated back to down to another moving average I have in place. The price action has then slowly stepped back up to that support/resistance line and been rejected at it for quite some time. It is really struggling there. However, at the same time the sellers have been struggling to really break the price back down further. So, the buyers can't get above the Support/Resistance line and the sellers are having trouble pushing the price down substantially. This tell me we are at a pretty important time now. If I place an ascending trend line under the price action on these weekly bars for the past 6 weeks, we will notice we are actually in an ascending triangle formation. So, if we break above the support resistance/ we are likely to get more a move to the high side. However, is in the next week the price breaks below the ascending trend line I have in place, doesn't it make sense for us to see more a move down? Yes, it does! We can see the price action has rebounded off the ascending trend line a few times so it is a strong/valid trend line and that makes it all the more likely that if the price does close under it, we will see a move down. Remember, this is the weekly chart so it makes price action moves all the more valid. S&P; 500 Chart - Daily So, let's move over to the daily chart. If we draw a descending trend line from the top of the price action this year down to where we are now, we can see we also have a strong support/resistance line that has been hit a few times. Now, if we move back to the straight trend line we drew in at the 1350 level, we can see that it has bounced off it a couple of times, before breaking below and it and it has then had a lot of trouble getting above it again. It did break through once before falling back and the point there is that if it was a strong move forward we should have had a bigger climb to the high side, this shows me the buyers are quite weak now. If we step back a bit on the daily and draw in the fundamental peaks and troughs we can see that we are stair stepping up, but that it has also formed a technical double top or a stop and reverse pattern when bouncing off the resistance lines in place. So, we are getting signs of buyers coming back with higher peaks and troughs but at the same time the sellers are hitting at the support/resistance times. This next week will be important. If the buyers can push the price past the resistance lines we are likely to see a move up to the 1420 level, but if it moves below the ascending trend line, we are likely to see more downside to 1280 lows in the past. Big Picture -- Learn Technical Analysis So, I really hope that helped read the current S&P; 500 chart. We can see that with just basic technical analysis we can get a lot from the charts -- simple peaks and troughs and trend lines. Please make sure you come to www.tradingandinvesting4u.com for more education and make sure you check out the cash flow mastery summit we are holding -- You can find this information on the banner at the top of this page. We will be teaching all the strategies we know to help you move forward, including how to learn technical analysis. You may also be interested in this video as well https://www.youtube.com/watch?v=cnHQGNs6gVA

• published: 16 Jul 2012
• views: 18833