$SPY $ES1! Short-term SHORT opportunity

Perfect cup and handle setup with negative RSI divergence showing. I am expecting rejection in this sell zone and approximately a 50% retrace (please manage your stops- risky because market is trending up and will likely go up after this retracement). Easy 3:1 risk/reward ratio. I expect to enter long after Cup and Handle pattern finishes

EDIT- feel free to take profit or set target at 372- Previous HULL peak and support range during Dec. 30-31

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Off to a good start! Rejection off of sell zone, no watch downward momentum pick up steam

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More than halfway there already! Remember to start looking for signs of consolidation around 372

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Looks like the cup and handle pattern is complete! The handle traced back to .618 instead of .5 as per my original hypothesis, but it made for an easy exit, as an obvious buy zone was established 3729-3734. Hopefully you were able to exit in time!

NOTE- this is why we must always be analyzing and reevaluating our trades. As I mentioned when the drop was underway- look for consolidation around 372. It happened, formed obvious support, and gave us a clear signal to exit our positions.

jumbodingdong

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jumbodingdong