Piker Trader

Today the market formed a doji as the bulls were unable to get above 1141.05.  When looking at the daily chart it is hard to see where the resistance is coming from at 1141.  It is only when you zoom out to a weekly chart that see what is acting as resistance at 1141. 

The 1141 level is the 200EMA for the weekly SPX chart.  This moving average has acted as previous resistance as well.  It contained the rally in January and looks to be trying to contain it again.  SPX is also being contained by the down trendline that begins in Oct and connects to the January high.

If we zoom out even further to the montly SPX chart, there is a pair of moving average that are acting as resistance.  On the monthly SPX Chart 50 Day EMA is at 1145 and the 89 EMA is at 1149. These moving averages like the weekly 200EMA capped the rally in January.

Here is the daily chart showing today's doji and the 1141-1145 resistance level. Also notice the overbought Stoch that matches the overbought observation from the post below.

I mentioned Friday in pre-market (see Friday's post) that the top should be around 1135, I still think we are seeing a topping process and there may be a short-term move to 1145-1150 but the market won't close at those levels.