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Market Analysis - 2/17/2016

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The charts below reflect my technical view this morning.


Chart #1. S&P March futures contract (ES H6) - By respectively taking out the PRZ's of the bearish Butterfly (1851-1852.50) and the bearish Bat (1868.50-1869) depicted in chart #8 of last Friday's Market Analysis, the ES H6 (S&P March futures contract) set its sights on a new target, namely, the bearish Shark's PRZ of 1924.25-1926.50.


Chart #2. S&P 500 cash index ($SPX) - Price closed above the neckline, portending further strength in the coming. Notice how the last rally from point B to point C ended abruptly upon running into the underside of the Andrews Pitchfork.


Chart #3. S&P March futures contract (ES H6) - Evidence of institutional buy-at-the-ask activity during the last few minutes of Tuesday's session.


Chart #4. Philly Semiconductor Index ($SOX) - This index bounced off the triangle's b-d line, spurring a rally across all major indices. But the Head-and-Shoulders top, while still unconfirmed, is not to be ignored. Should it eventually break down, the semis will surely be taken to the cleaners.  


Chart #5. Dow Jones Transportation Index ($TRAN) - This index, like many others, sports a Head-and-Shoulders top aiming to back-test a 'historic' breakout level. Currently, mean reversion to 7322-7346 (best estimate) is underway. This translates to a little over 1.5% of upside as of Tuesday's close.


Chart #6. United Parcel Service (UPS) - A component of the Down Jones Transportation index, $UPS sports a Head and Shoulders top with a downside objective of $73. With price back above the neckline, the pattern will have to reconfirm at some point.


Chart #7. Nasdaq Banking Index ($BANK) - This index bounced off its 50-month moving average, spurring a rally across all major indices. 

Trade smart,

 Peter 


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