The SPY ended the day in a Harami Cross reversal pattern (likewise the DIA) on the lightest volume we've seen in 10 sessions. Being that a doji represents indecision, the more indecision and uncertainty in the market the more likelihood a change in price direction and tempo. A lot of charts have this similar look, where price is coming up into a down-sloping 20- & 50 -EMA that are about to cross under or already have. Things still look weak.The 5-min SPY showed some nice examples of Inverted and Regular Cycles (referring to this post on Stevenson Price and Time Targets). You can think of a Regular Cycle as a phase which sees Accumulation followed by Distribution, and an Inverted Cycles as a phase of Distribution followed by Accumulation, which is all the "tape" really is.
The large cycle in the middle of the chart (33-bars in length) actually contained a number of smaller cycles, lending to the extension of this particular cycle (mid-day noise = lower time-frame cycles are dominant?). Here's a close-up of that 3-hour period:
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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