Interesting close to the week. Only two weeks left in the year, think they can hold it up for that long or are we due for a correction? Things certainly look to be getting heavy on the upside.
All weekly charts are showing bearish candle patterns.
The SPY showing a key reversal bar (though it is lacking in range); Higher Open, higher high, closing down and below the previous candle's close:
DIA - printed a shooting star
QQQQ - Hanging man with a high 33-cents shy of the '07 highs
SMH - hanging man type candle with a lower low, lower high, higher open with a lower close than the previous close. The real body actually engulfs the previous candle's real body:
IYT - Transports putting in a key reversal bar, with a real body which engulfs that of the previous bar:
Meanwhile, the VIX tested a low not seen since April '10. A good time to fade the move into support?
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
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