Hopefully we'll get some follow-through this week from today's gushing move. Everything was nearly over with after the first hour of the day, so it really was a rather dull day. On the daily SPY chart we see our first time price closed above the 10-EMA since Feb. 9th! Out of 46 trading sessions since the beginning of the year, 9 of them (today included) closed above the 10-EMA, and price barely achieved that.Price sprung up to penetrate, test, and close above a long-term trendline (long term on my time frame anyways).
If you missed the initial move in the early morning, we did have a pullback to the 20-EMA (on our 15-min chart) mid-day that offered an opportunity to get long. This pullback also coincided with our trendline.Overhead resistance is around the $72.90 area, which may or may not factor in as we go for a gap fill left from the March 2nd gap-down.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
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