Another "Spike and Ledge" setup this morning as the SPY registered another minimal new high.
The SPY did put in some relatively strong volume today (270+million shares, 24-days since we last saw this) and closed the week with both a higher high and higher close.Funny thing about that volume. A strong order came in right around the previous day's close to support this afternoon's downward swing.Intra-day we saw some nice equal moves hitting their Fib. Extension targets.
And finally, the SPY looks to be in a bullish Wolfe Wave. A breakdown and I'll look for a contrary wave (based off of 11/9 as the 1-point). A push higher and the "sweet spot" has an awkwardly wide range.Speaking of Wolfe Waves, take a look at the recent activity in the U.S. Dollar Index:
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.