FOMC minutes today at 2:15, always fun to watch the madness of a Fed day.
First thing of note today was that although a lot of breadth readings (Up/Down Volume, Advancing/Declining issues, etc.) were weighted bullish today, the TICK was experiencing progressively more negative readings than positive the later in the day it got.
Monday and Tuesday saw consolidation into a narrow, upward channel which we gaped above this morning, only to settle right back into the lower channel line by the close (the ellipse on the chart below shows off a "First Cross" short entry trigger).
While the daily SPY shows the 3/10 oscillator's slow line (a.k.a. "Stability of trend" line) beginning to dip into a negative reading (shown by the ellipse), only the second such time since the March lows. Also, we notice that price was rejected at the 20EMA and now rests on top of the 50EMA.
The Russell2000 (represented here with IWM) seems to be the weakest of the bunch at this point, with the 20- & 50-EMA's nearly crossing over.The Dow Jones Transportation Index (represented here using IYT) looks to have taken a bearish stance today, printing a big bearish engulfing pattern at a meeting of resistance of the 20- & 50-EMA's which are nearly beginning to crossover.
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
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