Mid-day Tight Triangle in SPY 1min Nov 24

I wanted to put up a quick mid-day update on the current market as of 1:45pm EST, showing a tight consolidation/triangle pattern that’s worth watching for a breakout play.

(Click for full-size image)

I’ve drawn two larger trendlines that highlight the price compression (solid lines) but there’s also a possible sub-dominant (dotted) trendline which could serve as a “Price Polarity” line (meaning that, once broken, the line would serve as resistance, as I have it drawn now).

We’re seeing daily compressions in both the 3/10 Momentum Oscillator and the NYSE TICK on the day.

Watch for any solid breakouts from either the Indicator, TICK, or – of course – price from the trendlines as drawn above for any potential sign of a breakout trade.

Otherwise, we’ll stay within an ever tightening and expanding contraction phase of market action ahead of the holidays.

Corey Rosenbloom, CMT
Afraid to Trade.com

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