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.
Currently hitting that 2nd down-sloping black trend line at $276.50 Will be interesting to see if price is affected by this at all. (Bounce/Walk along it/fall through and then backtest)
Komen
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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.
Komen
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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
Komen
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Queue the first Blue Rising Line.
Komen
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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.
Komen
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This is where I got the Green Support areas. Was a private chart.
Komen
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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
Definitely It will be interesting to see if the 2nd blue line is now resistance. Great chart!
GratuitousMastication
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Definitely some resistance around the middle range line. Looks like it wants to keep dropping. Tomorrow should be interesting.
SOXLite
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Ugly possible bear pennant is forming on spy e-mini futures. If it plays out, the measured move is to the mid $240 range on the spy.
GratuitousMastication
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Almost there. Bout to load up on SOXL, etc once we hit the 253 range. Going to have some tight stop-losses. So much going on politically
makhil85
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what what what..... this prediction chart is still valid....it followed your path really well good job man :) :)
makhil85
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i think measured move from last drop would take it to 145-150. But right now is way oversold on daily and hourly, so i am expecting some bounce on monday- tuesday, before doing final leg down
SOXLite
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I am watching the SOX index daily chart and waiting for rsi to reach below 30. Need divergence from there to buy tech safely looking back to similar slumps in 2014, 2015-16.
SOXLite
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I thought about taking a position but I think that this could be the C leg down to sub-Feb lows. Of course there will be bounces.
SOXLite
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Bull divergence taking shape.
RHTrading
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@SOXLite, Bought on close at that capitulation bottom. I saw the divergence too. They don't usually get run over like that.