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
I am always open to questions, comments, or suggestions on how to improve this blog.

Tuesday, August 11, 2009

1000 test rejected

The S&P fell under the 1000 mark, tested it later in the day and was rejected.
We continued making lower lows through the morning in the SPY on a bullish momentum divergence. The easy plays were in the early sell-off, while trying to play a counter-trend recovery got very choppy. The testing of $100 was met with a bearish momentum divergence, where we got three pushes to test this level, but couldn't close above it.
I mentioned yesterday the 60-min chart that was setting up to either correct lower or push higher based on the 3/10 macd. Here's where you see the example of how the fast line corrected off of the slow line as price sold lower. Meanwhile, the slow line is back to negative territory and setting up for a "First Cross" sell signal.

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