SPY closed at the highest point of the most recent range. Our momentum indicator is telling us to prepare for possible downside or a blow-off top.
On the 5-min chart below I have marked our
buy and sell envelope lines. Price hit our sell envelope (over-shot by 2-cents) on a momentum sell divergence and came back within our previous day's closing range.
Here's how I marked my 1-min chart of the SPY today. Early morning resistance was the Previous Day's Close. The low of the day was built on an inverse head and shoulders type of buy divergence.
That's all I have for the moment. I'm actually pretty drained from a busy weekend preparing for a big move out of state.
On the 5-min chart below I have marked our buy and sell envelope lines. Price hit our sell envelope (over-shot by 2-cents) on a momentum sell divergence and came back within our previous day's closing range.
Here's how I marked my 1-min chart of the SPY today. Early morning resistance was the Previous Day's Close. The low of the day was built on an inverse head and shoulders type of buy divergence.
That's all I have for the moment. I'm actually pretty drained from a busy weekend preparing for a big move out of state.
2 comments:
Hi,
On your spy 60 minute chart from 7/24 to 7/28 is that a slingshot pattern? Read your blog daily. Thanks for sharing.
jb58
Hi jb58,
I would consider it to be a Slingshot play. You would of course wait for a closing candle that produces a "higher" momentum reading (in this case the close of the 3rd bar counting in from the most recent candle). So, for arguments sake, you would bought at $97.95, perhaps a stop below that candle or at the lows of the day, and held (so long as momentum keeps giving positive feedback) to at least the close or probably overnight.
thanks for the question jb.
-todd
Post a Comment