Like October 7th, Friday’s intraday trading action in the SPY or @ES futures gave us a range day, where the best trades came from ‘fading extremes,’ or particularly, in watching for tests of Bollinger Band extremes on TICK and/or momentum divergences. I described these tactics in a previous post “Bollinger Bands, Divergences, and Candles on Range Days.”
I wanted to highlight two features or trades from today’s intraday market action – a Descending Triangle Support Break and a “Mega-Divergence” reversal opportunity.
Let’s take a quick mid-day check on the market and market internals on what’s shaping up to be a trend day down. Today so far has shaped up to be a trend day. To keep that bias going, we’re going to have to see new TICK lows on any new price swing to new intraday…
I mentioned this concept in more detail in an earlier post entitled “What Happens when Resistance is Broken,” and a follow-up post entitled “Opportunities from Popped Stops Intraday,” in which I described the concept of “Popped Stops” leading to quick scalp trades long from the ‘pocket’ of tight stops that often exist just above key resistance levels.
Let’s take a look at the recent 60-min chart of the SPY and note three distinct and classic short-sell signals – all of which failed and led to a “stop-pop” rally… including what could be another one developing right now.
I thought there were many opportunities to trade and learn from the price moves of today’s intraday action in the SPY (and broader markets). Let’s take a quick look: First, the 5-min chart: Without describing the whole day, I wanted to call your attention to the intraday reversal that took place at 12:30 CST in…
I wanted to highlight a strange conundrum that sometimes happens with classic technical analysis price patterns. Let’s take a look at a predicted “Bear Flag” pattern described on Friday that hit its target immediately upon this morning’s market open.
Though the day’s not up yet, I wanted to share a quick take on today’s “Rounded Reversal” pattern in the SPY, as it serves as a great educational example.
All three major US Stock Market Indexes – along with their respective ETFs – have formed two dojis in a row above their upper Bollinger Bands. While this certainly doesn’t guarantee a reversal, it’s at least a warning sign that would benefit us to take a closer look.
Let’s see the price moves of the DIA, QQQQ, and SPY off their March lows and take a look at the current doji candles along with other instances where at least two dojis in a row formed… and see what happened next.
I wanted to give a quick mid-day update on the current SPY structure (that of a possible rounded reversal that has formed a lengthy momentum and internal divergence). Let’s take a look:
I wanted to show a mid-afternoon “Best Trade” idea in the market today, which highlighted an internal TICK divergence with a momentum divergence as price filled the morning gap into the resistance area of Friday’s close. Let’s see it: