Today was the widest range (in SPY) since May 7th on strong volume. Starting off with a gap above the previous day's range (above R1 & Pivot) and continuation up above R2 where things turned around swiftly. Things seemed non-committal up until we got to the opening range where things really started to move (back down to pivot). A volatile channel mid-day (between pivot and R1) fell apart where an obvious momentum divergence built up.The strong positive TICK was unable to push price back above the opening range lows.
The 30-min chart looks a bit like a double-top from this perspective.The 15-min chart this morning showed a lower momentum high compared to the previous momentum swing high (looking at this morning's open compared to that of 5/18), a hint that price acceleration might be weak. Also of notice were the candles with excessive top wicks, telling us people were selling that $92.50 range.
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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