Technical Analysis Review for the week starting 4/13/15

S&P 500 - Daily:

 

The S&P 500 broke out of the small consolidation it had been in during the last week and looks to be headed back to all-time highs. It currently has resistance at the 78.6% retracement (note the Fibonacci grid on the chart is inverted and shows it as 23.6% retracement), but if it breaks through this it is suggestive that it should retest the all-time highs at a minimum.

S&P 500 – Weekly:

 

On a weekly basis the S&P 500 is still in a consolidation between 2,119.95 and 2,043.82 as annotated on the chart. A break in either direction would be indicative of where the trend will next move. Since the primary trend is still up, it is expected that the S&P 500 will continue to new highs.

NASDAQ (Daily):

 

The NASDAQ, like the S&P 500, has resistance at the 78.6% retracement. A break of this is indicative that the NASDAQ will reach new highs again.

NASDAQ (Monthly):

 

On a monthly basis the NASDAQ is pausing right under all-time highs from 2000. If the broad market continues higher it would be expected that the NASDAQ retests the all-time highs (5,132.52).

Russell 2000:

Of the major equity indices the Russell 2000, small cap index, is in a leadership position. The Russell 2000 leading is a positive sign for the strength of the overall stock market.

Russell 2000 (Weekly Index):

 

On a weekly basis the Russell 2000 has broken through major resistance at 1,214.77. For most of 2014 the Russell 2000 was consolidating below that resistance. It would not be a surprise if the Russell 2000 was to pullback and retest the former resistance level (now support).

 

NYSE Advance-Decline Line:

 

A significant positive for the overall stock market is that the AD line is again at all-time highs leading the major indices. This is suggestive that most of the major indices should reach new highs in the near future.

TLT (Daily):

Bonds, as measured by TLT, are currently consolidating on a daily basis ($132.79 = resistance; $129.16 = support). A break of the consolidation shown above will be indicative of the next move Bonds will take.

WTI (Daily):

WTI may have made a WTI under resistance at $54.18. A break above this resistance would be suggestive that oil has entered a new uptrend at least in the short-term.

VGK (Daily):

 

 

Europe, as measured by VGK, has had a very strong 2015, rising over 10% YTD. It recently broke its 200 day MA and it is consolidating right above it. A break above the current consolidation can lead to a strong upward move for Europe.

 

VGK (Weekly):

 

 

On a weekly basis Europe formed a double bottom on its 200 day MA and is currently consolidating below resistance at the 50 day MA.

FXI (Daily)

 

China, as measured by FXI, had a parabolic up move last week. After such a strong upwards move a consolidation is expected.

FXI (Weekly)

 

On a weekly basis, China’s recent strong up move broke through multi-year resistance. This is very positive sign for China, and potentially a sign of a new primary trend.