I describe trading candidates and possible action for selected, low-risk trade ideas to review.
Wshew! The day’s not yet over, and we’ve already had a ‘dual negative divergence,’ Rounded Reversal, trendline fake-out, and a potential ascending triangle forming.
Let’s take a quick look at these set-ups and how they played out, along with where we are right now.
I always enjoy highlighting ‘mirror image’ or ‘measured move’ price patterns on charts, and we have the potential for a resolution to the downside to test prior support if the current price structure completes the ‘reflection’ portion of the pattern.
Main idea – let’s watch the price closely over the next few days to see if this chart pattern completes as expected:
While the title might not sound that interesting, it can be important to watch “Angular Momentum,” or in simple terms – the change in the angles of rising trendlines – of the current SPY and S&P 500 intraday charts, which highlights an important point about the recent rallies.
Let’s take a look at the recent “Angular Momentum” chart and see what I mean:
Aaaand we’re off! Buyers pushed prices higher to trigger yet another round of ‘popped stops’ not only this morning, but over the last few trading sessions.
Let’s take a look at the recent ‘popped stops’ rallies and how they reveal the character of the market… and what that matters to you more than indicators or anything else.
I wanted to highlight a few quick recent charts of how the US Dollar Index positively correlates (moves in the same direction) with the 3-month Treasury Bill Discount Rate.
It’s not the most fascinating topic, but it’s definitely important to know of this relationship, so let’s take a look at a couple of recent charts.
With the US Dollar Index completing its daily Bull Flag, the Euro completed an opposite bear flag. Both currency indexes are at key inflection points, so let’s take a quick look at the key level to watch now in the Euro Index.
If you feel like the market is in Déjà Vu mode intraday, rest assured that you are picking up on a repeating pattern so far over the last three trading days, particularly for intraday traders.
I always enjoy highlighting good educational examples that occurred during a particular trading day – if anything to archive it – and today gave us a great example of trading a Bear Flag structure intraday… actually the whole day!
Let’s take a look at the 5-min and 1-min intraday SPY chart (identical on the @ES futures) chart for a fun lesson on flags.
I wanted to show a quick chart of the current mid-day SPY (S&P 500 Index) on January 14th to highlight a good example of price compression/consolidation which is often a precursor to a price breakout in one direction or the other, according to the “Range Alternation Principle.” Let’s take a look at the current intraday chart.
It’s time for another check-up on intraday market internals in the S&P 500! Market Internals – looking under the hood of the market – can help warn (foreshadow) turns in price in advance. As such, it is important to keep tabs on key market internals as an intraday trader, or even for a swing trader.