Shorts squeezed again! lol
Right back into our pitchfork, safe and sound
Price opened just under the 20-day MA, which coincided with the 50% retracement of our most recent swing highs/lows. A strong breakout candle, a close above the 61.8% retracement and a W-bottom pattern breakout set up today.
Price gaped up big today and didn't go any further than a 50% extension based off the Previous day's Close to today's Open. This also coincided with a 150% extension as measured off of the previous day's range (low to high):
Being that the year is in it's last month, take a look and see where we are on the grand scale. The S&P500 yearly chart puts us right under a confluence of resistance; the 23.6% level from the 1960 lows to the 2007 Highs and a 61.8% level from the '07 Highs to '09 Lows
However...The more times price tests Resistance...
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.