Seemed like a dull, quiet day in the markets today. It feels kind of peculiar that we're unable to push lower or higher this week by any substantial or technical amount.
SPY price gapped up to pivot point (5-min), turned around (put in a "First Cross" sell, red vertical line) and filled the gap. The retracement from that point brought price to the 20-EMA (inverse holy grail setup) and put in new lows, all the while putting in a bullish momentum divergence in the 3/10 oscillator. The concept with a momentum divergence is to buy the price lows of a higher low (between 9 & 9:30 PST), perhaps once price reclaimed the 20-EMA.
A first cross long entry coincided with a strong bar above the 50-EMA (green vertical line).Looks a little cleaner on this 5-min chart with NYSE TICK in subgraph1.
The 15-min chart highlights a couple of things from today; momentum divergence, price holding on the the lower regression channel, two First Cross entries (red&green vertical lines), and the 20- & 50-EMA nearing yet another crossover. Price continues to flip-flop above and below the $84.33 level. The Dollar faltered after Monday's advance.FXI looks like it's setting up a flag retracement. The swing lows and price look to be setting up a "Slingshot" setup (lower low in momentum coinciding with higher low in price).
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.