The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
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Thursday, December 12, 2013

thu. 12_1

DIA - made a lower low.  Tomorrow's open should determine whether the daily is diverging from the momentum indicator.  The hourly showing a small inverted H&S so a breakout from the neckline could see a move at least back to $159

IWM - Holding the 50-day MA with a small doji around the previous day's close.  A good example of the "XYZ - corrective wave" which stands out really well with the 3/10macd.

As an aside; in both the DIA and IWM above there are pitchforks which came close to, but did not touch their midline.  According to Andrews there is then the expectancy that price should move to the "trigger line" (shown in fuchsia).

The QQQ has still not tagged it's 20-day MA (sign of strength) and is trying to hold the double-bottom at $85.  I would suspect that immediate lower prices will get bought.

SPY has support below from the previous breakout area in November


The buying momentum today was pretty strong coming after a "triple swing divergence".  This large momentum is registers a reverse divergence and so the fade from that move could be pretty strong.  I would assume lower lows will be bought and a gap up (178.70 perhaps?) might get chased.  Previous triple swing divergence-turned-momentum-fade was 12/4; new lows were bought sharply but it needed a day to consolidate.

For now, there are lower highs and in some cases lower lows in place.  But buyers will begin to nibble and squeezes in both directions are likely to take place.

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