Very short term intraday (1 min) there's activity similar to yesterday afternoon as the market was ramping up late afternoon, but the 1 min charts were going negative. However as this is happening, which I think is probably little more than consolidation, some longer term charts are surprising in that they are turning positive. Now when I say longer term I'm not talking about anything outside of the trend thus far of trend #1, I mean 5 min charts, maybe a slight positive on a 10 min chart here or there, so it looks like some stronger support is building in, this is why I wanted to see some lateral price action today as we did (between 11 a.m. -1 pm in the SPY). This is more along the lines of the original expectations of a move that can take us above last Friday's intraday highs, which is the area I consider to be very fertile ground for a sharp downside reversal.
ES is the best example of this....
ES 1 min positive, but seeing a little loss of momentum and congestion in 3C, but note how thus far it has pretty much just caused a bit of a consolidation in prices.
Perhaps this will change some of the signals in AA, I'll check closer to the close.
There are a couple of other stocks I want to show you, they should be on your radar as they look like they'll present the kind of opportunity we like, when the trade comes to us on our terms: low risk, excellent entry, high probability and good timing. I'll be posting those for you shortly. For newer members I like to post the trade set ups, what we are looking for as we try to always let the trade come to us and never chase trades. If things go as we expect them to we have a great trade, if not, we didn't lose out on anything as there are plenty of opportunities.
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