A couple of updated charts:
The IWM is back inside it's long-term pitchfork (though tired as it looks), as updated from this post
While the shorter-term pitchfork shows the SPY making a move toward it's mid-line, which happens to coincide with a 200-day MA (and a lower high incidentally).
The momentum buy divergence as mentioned in this post, while giving some heat, did work out. The stop loss order should have been below the entry bar's low anyway.The markets bounced with some momentum this week as we were looking for from this chart but it's all about the follow-through up to and/or over $113
and how about that Lehman gap, I mean come on!All-in-all we've been inside this range for quite some time, and could be here for more time to come. We could even look at price as if it were an unbounded oscillator, with the overbought/oversold levels shown by the red and green horizontal lines respectively (and keeping in mind that a market can remain overbought, or oversold, for long stretches of time as it did in March-April).
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.