CALDEIRÃO DE BOLSA

ontem!

Last week we took a look at the parabolic SAR (stop-and-reversal) indicator, which ended up being very timely since we may very likely see a new parabolic signal today. In itself this is only mildly interesting, but become much more significant when paired with a couple of other tools.

On the chart below we have plotted three different pieces of technical data. First, in green, we have drawn the downtrending support and resistance lines. The blue line is a 10 day exponential moving average. Finally, the red dots are the parabolic SAR markers. We'll take a look at each one individually to see exactly where we are with the S&P 500.

1. The two green lines are a fairly strong channel that the index has traded within for the last month. We've touched it several times with intra-day highs, but previous failures to move and stay above it has resulted in another fall.

2. The blue 10 day exponential moving average has been a strong resistance line. Like the downtrending channel, we've made a few attempts at it, but failed each time. Last Friday we made our strongest push yet by closing just under it. This sets up an easy challenge today to cross and stay above it.

3. Finally, the parabolic SAR (stop-and-reversal) marker will most likely move from above the price bar to below the price bar today, which is a buy signal. This is the simplest of the three indicators, and the most prone to error. However, it is an excellent tool for pinpointing exact reversal days.

These are all important to keep an eye on today. All three of these indicators are at the 835 level, so any close above 835 is a sign of strength. And remember, with the exception of the parabolic signal, the closing price is the key price. It would also be wise to give any reversal at least one day to confirm itself.


SUPPORT
RESISTANCE

Nasdaq Composite
1290
1330

S&P 500
820
850

Dow Industrials
7810
8000