Sideways up until around 1 p.m. EST in the SPY. The down-side was limited to pivot support where we got a little double bottom for a more aggressive long entry. Two "First Cross entries, one short (red vertical line) one long (green vertical line). The long was a stop-out, but re-entry three bars later at a better price (around vwap). Price drifted to the highs that coincided with R1, not to take out Feb. 09th highs. I left the volume sub-chart in to show just how obnoxious the end of day volume spikes have been.The 15-min chart gave us a "Slingshot" setup to the long side, where momentum made a lower low while price put in a higher low (also coincides with a consolidating falling wedge left over from end-of-day yesterday).The daily leaves us with an ever-so-slight bearish momentum divergence as we've eked-out higher highs this week. Take note of the slope of the average volume as we've done so as well.Now to the weekly's. For the most part, we closed at resistance. But I'm taking note of something within the momentum oscillator. I wanted to go back to this concept of a "Slingshot" setup; here on the SPY we put in a higher high in momentum, while price was unable to put in a higher high, which could lead to a "Slingshot" in price to the downside.
Same goes for the weekly DIA:
Meanwhile, the Q's and IWM look a lot healthier at this point. The Q's look much healthier, with higher highs in price and momentum over the past few upside swings. It also looks to have a healthier "double-bottom" pattern, with at least some key support at the highs from the beginning of the year (and 21-week EMA).The IWM got above the 21-week EMA, put in ever-so-slight higher highs in price and momentum.
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.