A test of the Lows Of the Day (LOD) held today, showing us that "dip-buyers" are still in force. I'm sure if that opening gap was violated the bears might have gotten very over-zealous.
Watching the 30-min SPY chart showed off two factors in today's tape.
(1). the highs (resistance) coincided with a previous support level (SbR). The fact that the SPY couldn't regain $106 support was a hint at a potential reversal from that level.
(2) the LOD later on was met by a tweezer bottom AT intra-day support and AT the 20EMA. That intra-day tweezer bottom formed an inverse H&S on the faster time frame.
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
I am always open to questions, comments, or suggestions on how to improve this blog.