Three Push in 15m TICK Suggests Higher Prices for SPY

Jun 24, 2009: 7:56 AM CST

In a quick pre-market post, I wanted to show the SPY 15-minute structure which has a possible complete fractal Elliott pattern combined with a “Three Push” Reversal (divergence) reversal pattern in the TICK.

Refer back to my post on Fibonacci confluence support about the 880/885 level in the S&P 500.

We nipped an intraday low near this level on Tuesday, and seem so far to be bouncing above it.

The most important thing to notice is the triple divergence (three push) on the TICK – highlighted in yellow.  As price crested to new lows in three symmetrical ‘pushes,’ the TICK made higher lows and then turned around and made a higher TICK high not seen since midday June 18th.  That’s quite bullish short-term.

Also, and less importantly, we may have completed a short-term Elliott Wave five-wave fractal, though I’m concerned the 5th wave might be too short… but still within the guidelines.

An initial target might be the $90.50 to $91.00 area in the SPY, but let’s see how the market behaves as we potentially approach those areas.

Pre-market futures are up and today is a “Fed Day” (which could see lots of volatility) so let’s see what happens and how this potential structure plays out.

Corey Rosenbloom, CMT
Afraid to Trade.com

Subscribe for the RSS Feed here.

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

6 Comments

6 Responses to “Three Push in 15m TICK Suggests Higher Prices for SPY”

  1. Bob Says:

    6.25.09 … and this mornings pre-market is punctuated by “better than expected” durable goods orders. The market embraces such good news and rallies off the fib support levels.

    How about that! Is such good news being leaked to affirm Corey's analysis? 😉

  2. Corey Rosenbloom, CMT Says:

    Haha I wish I had the power to move the market!

    I actually sent this chart with more detail and comments last night to a couple of other market pros and debated on whether or not to put it up on the blog last night but wound up getting busy and not getting around to it – wish I would have! Would have looked cooler than posting it right before the market opened!

    Such is technical analysis – the market frequently will set-up for a move in a certain direction and then LATER we get the reason – better durable goods. Though the market rose all through the night and set-up the positive TICK divergence and Elliott pattern into yesterday's lows.

    Someone knew something (in terms of big funds) and the only way to get clued in was through the charts – footprints seen through price and volume (and internals, etc).

  3. Tom Says:

    Corey,

    Do you have any post on your blog describing the three push method?

    TIA

  4. Corey Rosenbloom Says:

    Hmm. I actually don’t. I’m launching an Education Section within the next week or so which will describe the set-up.

    For the time being, feel free to use the searchbar to find all the posts in which I describe the “three push” for insights – I describe it often in passing but not yet formally.

    I did describe it in my LA Expo Presentation however which will be rebroadcast July 1st.

  5. Tom Says:

    Disregard my previous comment about the post. Found it.

  6. Tom Says:

    Disregard my previous comment about the post. Found it.