Today showed another example of the theme I’ve been highlighting – literally – on the blog, showing multi-day rallies in the S&P 500. Today confirms that we are in yet another ‘highlighted zone’ as has been the cycle of the past.
Let’s take a look at these regions, the present chart, and what to expect going forward.
That’s a question I’ve been highlighting frequently, with the type of day structure repeating, almost forming a script.
What’s interesting is that – as of 1:00 EST – I can highlight the direct comparisons so far in today’s trading that are identical in everything but price to yesterday’s morning action.
There’s no guarantee that the market will continue following the script, but if it does, why not try to take advantage of it, as if the pathway forward for price was made clear.
I couldn’t pass up posting on the almost perfect short-term rising parallel trendline channel that has formed on the intraday chart of Crude Oil futures.
It allows us to observe a key channeling formation and learn an important lesson – that divergences can persist and give false signals while price remains in a powerful trend, and that it is more important to watch what price is doing in order to generate trading signals – an important lesson on all timeframes.
Following up from my previous webinar on trading intraday ‘dual’ divergences (TICK and Momentum), I wanted to show the most recent example in the SPY intraday with regards to the negative divergences that resolved in a downward swipe today, which serves as an excellent example of the concept.
Even if you don’t trade or look at the Japanese Yen Index charts, the Yen Index formed an interested “busted” (so far) head and shoulders pattern on its daily chart that is worth an educational look.
Beyond that, let’s look at the key levels to watch for an upside or downside break of current trendline boundaries.
I’ve been asking the question, almost rhetorically, “How many times will the market repeat the same pattern,” (see prior post for previous examples) and the answer is “at least one more time… today.”
What pattern is that? And how can knowing the pattern help your trading? Let’s take a look.
The market gave us another classic example of the importance of monitoring price along with something else, such as a market internal or key indicator.
In this case – February 22 – I wanted to show today’s lesson of how a “Rounded Reversal” pattern formed alongside positive and negative TICK divergences, and how this set-up some great opportunities… so that you’ll be better prepared the next time a similar set-up occurs.
Maybe you’re asking the same question as I am: “How many times will the SPY repeat the same script/pattern?”
What pattern is that, you ask? Take a look at my prior post:
I wanted to share two recent, clear examples of how to project a final price target to play for from a symmetrical triangle pattern formation.
The S&P 500 cracked the key 1,100 resistance level, and it was met as expected with a surge of “popped stops” as bears threw in the towel – which serves as another example of “what happens when key resistance is broken?”
However, we’re not seeing the classic signs of strength that accompany strong price breakouts… but does that need to be the case in the current altered financial landscape?
Do old rules still apply? Let’s take a look.