I have 2 charts for you tonight, One is the daily SPX with the trend lines from the Reference Candle of 10/10 (all time volume high on the daily) across the chart straight lines for the high and low. You can see where we traded today. Today we break the 10/10 high of 936.36 on 1/2 the volume for a bearish upthrust. This is the kind of signal we've been waiting for, so we traded short via SDS for a quick profit this afternoon. Now, as you will see on the daily chart we break the high today on improved volume vs. Friday, that leaves room for a retest of today's high.
On the hourly chart I have attached, you will also see that there is a good chance we'll see 921 again soon, probably tomorrow as well. So we'll be looking for one of these two to test and then determine our short or long strategy accordingly...
On the hourly chart I have attached, you will also see that there is a good chance we'll see 921 again soon, probably tomorrow as well. So we'll be looking for one of these two to test and then determine our short or long strategy accordingly...
Morning all, as you can see we did make an attempt to break the price envelope outlined by the 10/10 reference candle this morning.
ReplyDeleteWe're still due a test of the 921 hourly support based on present conditions. We have a bearish upthrust on the daily.
As you can see the price envelope is pretty robust, defining a mostly sideways move since 10/10/08. If we do succeed in getting back over the top line for more than 30 minutes, we could test daily resistance at 951/52
One more thing, on a 3 min basis, we did have volume at the high today, so we could be right back up to test that high. In fact that is the setup I prefer prior to testing that 921.
ReplyDelete