Thursday 9/17/2015

Price yesterday made a higher low and higher high versus Tuesday's candle and also closed above the prior multi-week high.  Please note that I have removed the official designation of 9/9 as a MW high and replaced it with a "?" - while it technically met the definition of a MW high in that a lower MD high followed, it requires calling the next day, which had a higher close than the MW high, the MW low.   In any case, it is obvious that price is on the upside of the MW cycle; the difference lies in the projection for the next MW high to be found, where my current leaning calls for a MW high due on Monday.  Of course, the "historic" Fed decision due today could have a great impact on the timing of this MW high.  The declining MM MA should act as resistance for the MW high; failure to do so would be a bullish sign for stocks.

The hourly chart shows price making a 24Hr low above daily pivot and 24Hr MA support, very bullish behavior indicative of price being on the upside of the MD and MW cycles.  Price made its 24Hr high one bar after the close (and one bar past projection) and has corrected mostly sideways overnight as price attempts to find its 24Hr low.  We are overdue for the 24Hr low to be seen, and the 24Hr MA or daily pivot should provide support for this low if price is still on the upside of the multi-day cycle.  We are in the window to be seeing a MD high, however, and it is possible that either yesterday's high or the next 24Hr high will also be a MD high.  If yesterday was also the MD high, price should fail to find support at the 24Hr MA/daily pivot and price should work its way down toward the rising blue MD MA in search of its multi-day low.