$SPX (daily, log scale) Rejected at 5/20ema and first close below 20sma in 1 month. Closed below yesterday’s lows, negating bullish reversal attempt. Also basing for 2 days so it could be consolidation before resuming downwards with 5/9/20ema converged ready to push the next drop in a drop-base-drop sequence. $QQQ (daily, log scale) Basing in […]
We’ve had a significant pullback in the market of close to 10% in $SPY in less than 3 weeks. We were fortunate enough to capitalize on most of the move while sticking to the newsletter plan without emotion. I posted a timeline of each steps of the trade corresponding newsletter updates in a twitter thread.
$SPX (Yearly, log scale) Since the 2021 completed, it only fitting that we look at the yearly candle and where we stand historically. Every the yearly historically has shown long term market direction as we can see from the chart below. We closed at or near a true life time channel top that extends from
$SPY weekly bearish engulfing of prior 2 candles (hanging man and doji) so reversal signal is confirmed. And considering it just rejected off multiple layers of channel resistances, this should be short-term top. Weekly 5/9ema and MACD ready to bearcross so there is potential for strong follow-through if bears decide to take advantage. $SPY (daily)
$ES_F (4H) rejected at dual channel resistance last night and currently consolidating in shorter term channel. We could potentially see chop/consolidation tomorrow and then movement following FOMC on Wednesday. $SPY (daily) little hanging man at potential channel resistance. (remember the weekly and monthly negative divergence is currently in play) $QQQ (daily) hanging man (potential reversal
$ES_F (daily) chopping along the channel resistance all week. Momentum slowing down with spinning top daily candle friday which indicates indecision and potential reversal candle. I remain bearish as long as current channel resistance holds $SPY (daily) similar channel as $ES_F along with shorter term channel (orange) providing dual resistance. $SPY 1H head and shoulder
$SPY (weekly) Hanging man ((reversal candle) prior week… and as anticipated the channel resistance held with bearish confirmation. Is it a guarantee that we topped? no guarantees in life and trading but its a setup you take with set risk/stop in place. $SPX (daily) how to catch a top reversal. Look for the a breakout
$SPY (Weekly, arithmetic scale) closed right at the channel resistance with a hanging man. Potentially signaling the top if we close the week with a bearish candle. If we push further up, we have the 443-450 level that other people are wait for which happens to be the top of the 20 year channel $SPY
$SPY (weekly) confirmed breakout above the megaphone resistance on friday. However, RSI hasnt broken out yet so there could be some turbulence. $SPY closer look at the RSI which has 2 trend lines approaching that could act as resistance. Watch for daily candle rejection as we approach these lines $SPY (4H) Short setup: Watch for
$ES_F setup from Sunday newsletter triggered. $ES_F +27 points from the supply zone. How did you play the setup? As I said in the FAQ writeup… once it chops in 5min, you go to 15min to hold the trigger price with a full red candle or print a green anchor candle. Once 15min chops through,
3/9/2021 Trade review Read More »
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