intra-day supply/demand

 From Yesterday

Carried over into today, with adjusted and newly added S/R levels. 

Congestion zone

Markets still within congestion, a breakout in either direction will show some good volatility.

 Showing momentum divergences:

 Intra-day trendlines and resistance intact:

EURUSD breakout

The daily has been setting up as follows:
Bullish momentum.  Continues to break out and test previous supply

 60-min resistance

 5-min setups:

narrow channel range

over-complicated?

To see things as they are and not the way you want them to be requires good vision and a reasonable intellect. Actually, it is better if we have no intellect working at all. This test will illustrate what it takes to be a success using a Zen approach to the market.

Start with the vision test. Keep this text at a reasonable distance from your eyes. Now read aloud the following numbers:

27 28 29


Did you say twenty-seven, twenty-eight, and twenty-nine? Brilliant! You’ve passed the second-hardest part of doing well in the market.

Now for the hardest part. Look again at the numbers and say out loud the number that is the highest. Now say the lowest. Which number is between both numbers?

Did you say that twenty-seven was the lowest and that twenty-nine was the
highest? If you also said that twenty-eight was in the middle, then you’ve passed the test with flying colors! You are on your way to being very successful in the markets. You may be laughing, but I am dead serious. If it really is that simple to recognize what the market is saying at all times, why do you have to complicate it?

updates from the week ending 9/3

A couple of updated charts:
The IWM is back inside it's long-term pitchfork (though tired as it looks), as updated from this post
While the shorter-term pitchfork shows the SPY making a move toward it's mid-line, which happens to coincide with a 200-day MA (and a lower high incidentally).
The momentum buy divergence as mentioned in this post, while giving some heat, did work out. The stop loss order should have been below the entry bar's low anyway.The markets bounced with some momentum this week as we were looking for from this chart but it's all about the follow-through up to and/or over $113
and how about that Lehman gap, I mean come on!All-in-all we've been inside this range for quite some time, and could be here for more time to come. We could even look at price as if it were an unbounded oscillator, with the overbought/oversold levels shown by the red and green horizontal lines respectively (and keeping in mind that a market can remain overbought, or oversold, for long stretches of time as it did in March-April).

link

Valuable post worth linking to:
Dennis Gartman's Stock Trading Rules

squeezed

Part of the game is knowing who will need to cover in the event of an adverse move. In today's case, much of the short side was forced to cover their hand. Updated chart from this previous post:

Lower Median Line

The long-term lower median line held for the SPY, DIA, & QQQQ
unless we use the flash-crash lows for the QQQQor, we can use the flash-crash as our low for the longer-term pitchforkWhile the IWM is in snap-back mode