Just Drawing Lines; SPY Ascending Triangle
Finding the price action, particularly Friday's gap and go run, highly unusual.
We're either 1. Still creating a pattern, or 2. Breaking out. And it's not option 2.
It doesn't get much more interesting than this for TA folks.
Like most, until this afternoon I was looking at the possibility of a symmetrical triangle or descending triangle. But Friday's move above the previous Lower High eliminates both of those possibilities, and also I have serious doubts that this is a 'breakout' of those patterns.
I believe we're still carving out the shape of this correction phase and I need to figure out the pattern because with a range this size, there's loads of profit to be made. I need a 3rd point of the pattern in order to narrow it down and I believe we may have put in our swing high today.
- Dow is about to flop
- Nasdaq has a divergent high
- Russell showing some strength actually, long overdue. Would be nice to see small caps outperform.
- SPY is the behemoth I'm interested in.
With Friday's price action, the volume trend fits well for an ascending triangle.
Link for the rationale behind the Ascending Triangle possibility:
www.tothetick.com/archives/2545
We're either 1. Still creating a pattern, or 2. Breaking out. And it's not option 2.
It doesn't get much more interesting than this for TA folks.
Like most, until this afternoon I was looking at the possibility of a symmetrical triangle or descending triangle. But Friday's move above the previous Lower High eliminates both of those possibilities, and also I have serious doubts that this is a 'breakout' of those patterns.
I believe we're still carving out the shape of this correction phase and I need to figure out the pattern because with a range this size, there's loads of profit to be made. I need a 3rd point of the pattern in order to narrow it down and I believe we may have put in our swing high today.
- Dow is about to flop
- Nasdaq has a divergent high
- Russell showing some strength actually, long overdue. Would be nice to see small caps outperform.
- SPY is the behemoth I'm interested in.
With Friday's price action, the volume trend fits well for an ascending triangle.
Link for the rationale behind the Ascending Triangle possibility:
www.tothetick.com/archives/2545
Komen:
We did see a bounce from $276.50. Went to $278.00 - the breakdown point. Support became resistance and we got rejected.
Currently filling the gap at $275.50.
Let's see if we reverse higher after filling or if bears take over.
Blue rising Lines will come into play soon.
Currently filling the gap at $275.50.
Let's see if we reverse higher after filling or if bears take over.
Blue rising Lines will come into play soon.
Komen:
Goes against my chart, but I'm inclined to believe that we'll have 1-3 days of upside from this point. Indicators have just dropped too low too fast in comparison to price.
We also filled the gap and have some very strong economic data come in this morning. SPY currently $275.50
We also filled the gap and have some very strong economic data come in this morning. SPY currently $275.50
Komen:
Queue the first Blue Rising Line.
Komen:
Gapped below the blue line. Not a positive development.
Will look for my first entry somewhere around the Orange horizontal line and 2nd Blue rising line.
Will look for my first entry somewhere around the Orange horizontal line and 2nd Blue rising line.
Komen:
www.tradingview.com/...t-Resistance-Levels/
This is where I got the Green Support areas. Was a private chart.
This is where I got the Green Support areas. Was a private chart.
Komen:
We've hit the 3rd blue line and are battling with it now.
If the previous gap to the downside was any indication, today's downside gap is also not a very positive sign.
We are not below the middle point (Orange Line) and therefore Reward/Risk is better for a long entry.
Stay patient for now. Political atmosphere is deteriorating
If the previous gap to the downside was any indication, today's downside gap is also not a very positive sign.
We are not below the middle point (Orange Line) and therefore Reward/Risk is better for a long entry.
Stay patient for now. Political atmosphere is deteriorating
Komen:
Now what? =0
Will be interesting to see if price is affected by this at all. (Bounce/Walk along it/fall through and then backtest)