Yesterday we made new highs on the SPY, though the majority of the day was spent in a narrow range below the highs, yet above the previous day (mostly).
Today we put in a lower high, on very light momentum and volume.
The chart below includes a Fibonacci price extension drawn from yesterday's High & Low and projected off of this morning's High, giving us potential support extensions.
Also on the chart below is drawn a Fibonacci price retracement tool, snapped from yesterday's High down to it's Low giving us confluence zones of support.
Price was unable to sustain the upper 50% of it's previous day's range today and sold off on heavier volume. These last two double down swings have registered divergences, and the highs seem to get tested more frequently than the lows have been lately.
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
I am always open to questions, comments, or suggestions on how to improve this blog.