Price action has been very strong. A/D line is holding up. We might see some choppiness as we approach 1400/1396.
I think it has potential as a range play. I wouldn't be surprised to see the previous swing highs get taken out by enough to flush the stops, then see a decline. Earnings season is beginning and will drive things for a while. Hard to imagine there will be a lot of upside surprises.
This trade definitely had merit. The breaking of Friday's low would have been confirmation for short entry. I don't trade SPY but I will start. Thanks for originating thread Jackstone.
Thats it. Turning now towards the end of the day. All we need is a news story to force it down tommorrow and then to the bottom of the channel. Puts are dirt cheap right now for the SPY. Going to pick some up as we speak.
I suppose in practice I agree with the analysis. I am short GBPJPY at 203.98 and looking for about an 800 pip move to the downside by month's end.
triple tops don't generally hold, in my experience.. mkt wants to go higher, unfortunately... hope spoodrek gets back down to 1360ish
Yes keep selling it - 1370 level for the ES is still the magnet for distribution. We have failed to touch 1398 major over/under level several times in the last few weeks and that shows current weakness in "buyers" above the 1370 level.
I stepped out to go to the Coffee Bean for a while and then I come back to find this chart. I look at price very simply without indicators except for maybe Bollinger Bands/Keltner channels, a few simple trend lines, moving averages and some simple concepts. The price didnt make it through the old highs so now its time for it to turn around and test the last low. I got caught up in this last year with the Qs in Feb 2007 and its not going to happen again. Look at this chart...price turns right around after testing last high in the sideways channel. It doesnt get better then this... I'll admit that I poorly worded the title of this thread, but it was catchy.
Thanks ES - down to the 71's and then the small bounce. Nice sell off today with the return to the 1370 area.