A quick look at the SPY weekly/daily charts after what has developed over the previous week.
The weekly chart shows the 3/10macd fast line crossing over the slow line (theoretically bullish). This is the first bullish sign in three months. Now, this can either be the beginning of a fresh bullish cycle or it can turn out to be a dud pullback that rolls over, like it did in July of last year (labeled "hump").
So far the daily is showing resilience and attempting to push through overhead resistance. There exists the ideal progression, wherein we get a 3d setup (which in this case showed itself in the form of a bear squeeze) followed by a move higher (back into the Moving Averages window) to test overhead supply, then a pullback (2c-d) which is met with strong demand. All-in-all looking buy-the-dip bullish.
If that weekly chart turns out to be a "hump" I would be looking for signs of weakness on the daily chart coming in the form of a failed support test (4c criteria).
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.