SPY Update

In light of the options chain I just posted and my guess based on the chain that the SPY would likely close out the week around $132.50 (subject to change if the options chain changes significantly) on Op-Ex Friday, these following charts make some sense in this light.

 Here's where the back of the uptrend was broken, don't forget my first post of the week on what reversals look like (we'll come back to that). At the red arrow, the back of the trend was broken.

 Looking at the new downtrend, we've had 3 of 4 days trending lower, only today qualifies as a nose day, but its low is not above the yellow signal candle's highs, so the downtrend s intact. The hypothetical candle I drew in (yellow) would break the downtrend as its low would be higher then our current signal candle's high.

 Here the 60 min 3C chart is confirming the downtrend, from upside confirmation, to negative divergence at the top to downside confirmation now at the second red arrow.

 The 30 min chart is also confirming the downtrend with the lows of today being at a relative negative divergence at the second red arrow (meaning they-price- are higher then the start of the arrow , yet 3C is at the same level-thus a relative negative divergence.

 The 15 min chart shows the reversal (the first white arrow should be red, my bad), there was a positive divergence yesterday at the EOD lows that sent the market higher today, but there's nothing n this chart beyond confirmation, no bullish positive divergences. It's almost as if they are keeping the SPY in the $132-ish range.

 The 10 min chart shows confirmation of the downtrend at the green arrow and a negative divergence at today's highs. Currently the 3C position in the red box is at a slight leading negative divergence. In any case, there's no signs here of a big move up or even a big move down, once again it looks like the market is being pinned.

 The 5 min chart  shows today's negative divergence at the price highs of the day, there's a slight relative positive divergence, suggesting they don't want the market to drop too far, t all looks very controlled.

And the 1 min chart is just showing the price moves, with some positive and negative divergences, but once again nothing extremely strong pointing to a directional move of any significance. This all fits well with the options chain I posted earlier.

As for Monday's post of what reversals look like, you may want to review it here

Thus far the reversal is what I would expect to see.

Here's the reversal in white with only some slight volatility/noise in the red square, actually quite a bit less then some of the examples of major reversals  showed in Monday's post linked above.