Spy Master Chart

Discussion in 'Trading' started by michaelscott, Jun 15, 2007.

  1. Here is what I am looking at for the SPY. We cleared the triangle that I was fearing and it appears there is support at the next trend line down. This is not a strong trend line though and it appears there is another trend line we hit today. If the index moves lower on Monday it might retest that bottom trend line.

    That bottom trend line will fail if there is a volatility event. Trace back that trend line and you can see failures in February and May of last year.

    There is a possibility of a fall to 1430 where the 1987 ultimate trend line exists. That will be the ultimate test of the market.

    If the index moves up from here then the next stop will be 1550-1575 level. If you look back at action from 2002-2003, you will see a double bottom cup and then the price broke above that. The exact target price of that cup is 1575.

    I use this chart to trade the SPY. This is the master chart. It has not failed me.

    See Makloda? Was it this hard to figure out that the price would fall when two trend lines come together to form a triangle?
  2. A close above 1532.20 today will signal an extended rally toward the highs made two weeks ago at 1540.56

    1578 is a potential target should the SPX move to new highs.