This is the first post of 2015. First of all, wishing you a Happy New Year !
Now to trading …. what we do best.
Let us look at two broad market symbols. One each for USA and India markets.
We will look at QQQ for USA market through At A Glance.
QQQ dropped on the last day of 2014. And erased the snail paced gains from previous about 2 weeks of trading. Attached is the At A Glance (Weekly and Daily) look at QQQ. Is it topping over in Daily. Weekly Backdrop is Bearish (magenta). Daily Flow is Bearish (magenta). Relative Performance is weak and is displaying a clear Go With Flow Short signal as of end of 31st Dec 2014. There is a Memory Support nearby in Daily – but not too near. One caution might be that on 31st the Activity was rather light. Higher than previous 4 trading days (where Activity level was Very Low).
Incidentally, SPY and DIA also has similar looking chart. However QQQ has clear Lower High Lower Low in Daily chart. Making it more probable candidate for the beginning of a downtrend.
Now to India market. We will look at Sensex index (.BSESN) through At A Glance.
Like QQQ, Sensex also made clear Lower High Lower Low and since Christmas time mostly moving sideways – until 1st Jan 2015 (which was a trading day in India – markets were open). It moved so sideways that it managed to pass the peak of the Triangle formed by Support and Resistance Memory lines. An unusual occurrence. Pretty calm movement. Such calmness is unlikely to continue and it will move more rapidly sooner than later. Will it move up or down? We don’t know. The Traffic Light candle color is green in Daily. However that color might be misleading due to the unusual calmness in market. Relative Performance is weak for sure – both in Weekly and Daily. And Weekly Backdrop color is bearish (magenta).
Lets keep an eye on QQQ and .BSESN symbol as well to get an idea of where USA and India market is going to move in early 2015. Currently they are of bearish connotation from the At A Glance views. What do you think?