The SPY falls apart.
I had to take the following snapshot in two parts because the extension caused the chart to look all squished.
The early morning had an opportunity to squeeze higher, but just couldn't close above the overnight highs of $146.14. Highlighted regions show TICK divergences, but the weakness of the price bars was evidence enough. The 11:00 slight TICK div at the overnight range midpoint is a good example in reading the price bars to determine whether a divergence (and the resulting bounce) is strong or weak.
Later price just deteriorated after losing (and rejecting a re-test of) the overnight lows $145.56. Again, lower price lows on higher TICK readings doesn't mean to buy just because it is a divergence, we have to pay attention to the price bars to gauge strength or weakness.
A key for the above chart to define the horizontal lines and dots. For further explanation, see this link:
Advance/Decline issues essentially trended down all day. It (weakly) tried to bounce at the zero-line but failed, back-tested, then fell apart. The Up/Down volume final reading was the lowest since June.
What cautioned me for potential weakness was how the 15-minute 3/10macd set up. Price showed a 3-push pattern within a channel (bear flag), while the 3/10macd showed this Head & Shoulders type of pattern, which I have just become accustomed to seeing as bearish. Later in the day provided a good example of the 4d-4c continuation criteria (just a bear flag).
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.