"Since Friday, we haven't had any divergences of significance in the averages, however the Rounding/Head Fake top price pattern or "Igloo with a chimney", seemed to be the most appropriate probability and since then as this small flag in the averages (especially SPY) has developed, it has become a catalyst for such a move. I still think it likely needs to be done before whatever happens on Friday in Greece actually happens."
A little further down the post the price pattern is expanding upon...
"This flag-like price pattern simply needs a breakout above SPY $212.50 and that should be the catalyst to fulfill the remaining top price pattern. I have little doubt that we'd see the necessary distribution to confirm a head fake move"
With Greece's D-Day almost here, amazingly this area identified as the catalyst to get this entire top ended, just broke above SPY $212.50...
From just a few minutes ago...
You may recall there were some divergences in Index futures as well that suggested the same, although very poorly formed, they can also be found as well as "what comes next" lower in the Daily Wrap.
It doesn't look so good.
Ironically, that's exactly what you want to see in a head fake or false move, I just demonstrated it in the USO post on the USO breakout above its base's trend line, a very clear leading negative divergence as it did so.
So now I don't have to waste a lot of time going through hundreds of charts and can focus on the ones that are trade set ups. Hopefully this holds out a bit better than recent intraday attempts.
No comments:
Post a Comment