The DIA will post a change in trend should today's high remain below the orange trendline. We can presume with a fairly high degree of confidence that a break below the red trendline will give us a false breakout (which as always is one of the best reversal signals we have).
QQQ -The Q's can't change the swing trend today because of the highs already put in, but more important would be the false breakout confirmation which would occur with a close below the red trendline.
As the SPY sits now, it is a confirmed change in trend, so long as it doesn't make a high on the close that is higher then yesterday's low. The SPY as it sits right now is also a confirmed false breakout yesterday as we are below the red trendline. These will be important levels to watch today and we can probably start easing in to some short positions with a little more confidence.
I wrote to one member yesterday that I had a feeling today would be the day.
Thus far, the concept of what we've been looking for in the markets since Late May/early June was played out almost exactly as expected. This isn't because of a crystal ball, it's not a guru thing ether, it's simple, objective observation of market behavior, especially as it relates to retail traders. Remember what I posted last night about the dominant Price/Volume relationship and remember all the small clues along the way.
Lets see how this plays out and where the opportunities are.
No comments:
Post a Comment