Quote:
Originally Posted by petegz28
Number of things....
Stochastic RSI is showing a divergence to price
ATR has probably peaked meaning volatility will come down
Adv\Dec line is not confirming lower low in price
Price is close to support set back in July
3rd wave of a possible ABC retracement
Support level set back on 9/20 is looking to hold for the moment
Volume on this last leg down was lighter than the first leg
Now I say short term as is a short term trading opportunity or a chance to sell into an upcoming rally. We still haven't fully reached the support levels from July and we could easily make another run down to the 200MA
I suspect however a run back up to the 50 day SMA and hopefully start seeing some sideways movement from there.
Now a lot of this can go to shit this afternoon if selling comes roaring in which is why I stated that today's price action is key.
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Quote:
Originally Posted by petegz28
Well, a little quicker than I expected but we are about to butt up against the 50 day SMA on the SPY. I expect some kind of choppiness over the next couple of weeks as we see what happens with the current down trend.
The strength of the current down trend started showing weakness the last couple of days so we will see if it's a relief rally or if the trend is coming out.
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Quote:
Originally Posted by petegz28
As expected we ran up to the 50 day SMA and are backing off. Today is looking like a classic reversal day. People most likely unloading today what they wish they unloaded 5 days ago. Doesn't mean we haven't set a short term bottom though.
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Looking like we could very well be putting in a head and shoulders bottom. Today will be key. Volatility is still coming out of the market and the strength of the down trend has flattened for the moment.
However we could also be in a bit of a new trading range between 427-440 on the SPY.