SPY Super Predictable.
Updated
Hello Traders,
It's been awhile since I've shared with the class, so I figured I'd give a little Christmas treat.
In Dec., SPY has been extremely predictable so far. Those trendlines (the 2 red and 2 long green and blue), those were drawn around the 6th. As you can see, the PA has been very true to the trend.
Now, this is where it gets a little more exciting. IF TODAY CLOSES ABOVE THE NECKLINE, which happens to be the trendline, or one of the upcoming days... There is a potential IH&S (inverse head & shoulders aka H&S bottom).
I realize that is a little tight with that right shoulder only a point or so away from the bottom of the head, but technically it still applies. Since it is I would guess that this means there could be more Throwback (moves down before up) and this would hurt post breakout performance.
Note: this IHS could totally wipe since it's unconfirmed so far. Also, the target is not a prediction of date, could happen sooner, could happen later. The other wrench is the throwback, if we see a lot of it, the target will significantly be reduced. Even if we decide it's not going to be a IHS it's still an (Eve & Adam) double bottom with a fast reversal on the Adam side, so bullish either way.
With all that said, I think we are looking at a nice little melt up to end the year and pending any crazy news, we should also have a pretty bullish January. So move all of your doomsday predictions out at least a month bears.
Good luck and Merry Christmas.
Sincerely,
Mike
****Be sure to Like, Follow, Support****
It's been awhile since I've shared with the class, so I figured I'd give a little Christmas treat.
In Dec., SPY has been extremely predictable so far. Those trendlines (the 2 red and 2 long green and blue), those were drawn around the 6th. As you can see, the PA has been very true to the trend.
Now, this is where it gets a little more exciting. IF TODAY CLOSES ABOVE THE NECKLINE, which happens to be the trendline, or one of the upcoming days... There is a potential IH&S (inverse head & shoulders aka H&S bottom).
I realize that is a little tight with that right shoulder only a point or so away from the bottom of the head, but technically it still applies. Since it is I would guess that this means there could be more Throwback (moves down before up) and this would hurt post breakout performance.
Note: this IHS could totally wipe since it's unconfirmed so far. Also, the target is not a prediction of date, could happen sooner, could happen later. The other wrench is the throwback, if we see a lot of it, the target will significantly be reduced. Even if we decide it's not going to be a IHS it's still an (Eve & Adam) double bottom with a fast reversal on the Adam side, so bullish either way.
With all that said, I think we are looking at a nice little melt up to end the year and pending any crazy news, we should also have a pretty bullish January. So move all of your doomsday predictions out at least a month bears.
Good luck and Merry Christmas.
Sincerely,
Mike
****Be sure to Like, Follow, Support****
Note
I must apologize for not removing the stoploss for chart clarity, I hope it's clear enough to understand.Trade active
Pulled back in that last hour JUST below the neck.Note
Please note: when I trade I don't use all of these indicators. Only when I do analysis. thanks for pointing that out colesonxTrade closed manually
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old site: uprighttrader.com
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old site: uprighttrader.com
Scripts: tradingview.com/u/UPRIGHTTrading/
Like & follow for great ideas & indicators!
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