GAME OVER for SPY
Updated
I think the floor is ready to drop out here finally.
1. Most sectors have fallen over the past week or two, but you wouldn't know it from watching SPY (by design).
2. Big upward moves into XLP and XLU (defensive sectors).
3. FAANGs launch into resistance levels over the past week (to hide the selling in many other smaller-weighted names).
4. McClellan Oscillator <mid-line
5. VIX 10MA rising
6. Sharp, big red day yesterday and a jump in ATR volatility, backtest today and FAILURE of the daily 20MA.
All this = Rug Pull
This goose is cooked, IMO. Sellers look to be in control. Stop out on a DTL break from the recent high.
1. Most sectors have fallen over the past week or two, but you wouldn't know it from watching SPY (by design).
2. Big upward moves into XLP and XLU (defensive sectors).
3. FAANGs launch into resistance levels over the past week (to hide the selling in many other smaller-weighted names).
4. McClellan Oscillator <mid-line
5. VIX 10MA rising
6. Sharp, big red day yesterday and a jump in ATR volatility, backtest today and FAILURE of the daily 20MA.
All this = Rug Pull
This goose is cooked, IMO. Sellers look to be in control. Stop out on a DTL break from the recent high.
Trade closed: stop reached
Stopped at 3792. Just a quick flush back to the Daily Bollinger Band Low was all we got. Next time I plan to take profits at the obvious smaller channel low (red). I was expecting a larger pullback since the main downtrend channel since November broke down, but I'm thinking it might be better to be proactive about taking profits when target zones are hit. I could always get short again if the upper channel line (red) had held. No reason to let a good profit turn into a loss.
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