Looks like the target zone last posted on 12/06/2018 worked nicely! Good work everyone! Sold our puts, and then flipped and bought calls all in the green buy zone. Now we're targeting the purple Cypher pattern D point to sell. Price may bounce higher to the blue or green shark patterns at the higher levels, but we'll have to watch the rsi and look for divergence. Also Of further interest, is the possible diamond reversal pattern shown in yellow. These are areas that that market "packs energy" and when it releases, it can be very powerful and quick!
However, the 12/07/2018 low was deeper than I would like to see. This may be an early warning that more long term downside is yet to come. I don't think we'll get the "Santa Rally" that most traders are calling for. We must carefully watch the November lows. If SPY breaks lower than that, then I'm a seller! The deep pullback yesterday (12/07/2018) may be the beginning of a Deep Crab pattern that projects a nasty run down to the 250 zone.
Until then, I am playing my call options for a bounce up to the Cypher completion, or a bit higher to the shark pattern completions in the 270+ sell zone shown in red.
However, the 12/07/2018 low was deeper than I would like to see. This may be an early warning that more long term downside is yet to come. I don't think we'll get the "Santa Rally" that most traders are calling for. We must carefully watch the November lows. If SPY breaks lower than that, then I'm a seller! The deep pullback yesterday (12/07/2018) may be the beginning of a Deep Crab pattern that projects a nasty run down to the 250 zone.
Until then, I am playing my call options for a bounce up to the Cypher completion, or a bit higher to the shark pattern completions in the 270+ sell zone shown in red.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.