Bulls were owned today while looking for a dip to buy. You only really need to see one chart from today; that being the SPY with TICK distribution, unbelievable:We've nearly filled the gap left from earlier this month:We did breach the trendline in place since the March lows on strong momentum.
Speaking of trendlines, let's look at other markets with a similar theme:
There's the IWM trend broken, ouch!
Ditto the Q's:
The DIA, however, is lagging (but then look at some of the stocks that comprise the Dow Jones Industrial Average, who wants half of 'em?):The Dow Jones Transportation Index leading the way:
These trendline breaches are important in the sense that when we do "bounce" we'll have to watch how these trendlines are tested and/or recovered. Take the Dow Jones Utilities Index for example. It breached its trendline, "bounced" back in an attempt to recover the trendline, only to fail.Watch for snap-backs to these broken trendlines and whether they can recover or if they're seen as opportunities to sell.
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.