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
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Wednesday, February 29, 2012

i think it's called a sell-off

It feels like we haven't seen this in a while.  A proper bearish day.
Worth noting is the A/D-line pullback to zero on a lower TICK which preceded the selling into the end of day.  Curious that we didn't get a lower TICK reading on those lower lows.

So, one sell-off does not a top make and the previous swing low is still intact, for now.  A curious development on the higher time frame ES we have lower momentum on our higher swing highs with lower momentum on our higher swing lows.  Tomorrow should be interesting; a correction is welcomed by both bears and bulls alike, but going forward a lower high is the first step in developing a bearish bias.

So, provided the SPY lows are taken out going forward, we do have some targets to look to given that today's momentum-pullback-continuation formed a very symmetrical seed wave

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