SPY - Are we having fun yet?/Swing LOW
Updated
That was a fun day. I suspect the market will pop up green tomorrow AM and re-test previous ATH's before jackknifing. Major support/resistance levels from 2-day chart (helps eliminate a lot of the noise). Short @ $357. First target, $335.
Note
Note the OBV/price action divergence on the daily chart (not pictured). Price action is head to head with previous all time highs, while on-balance volume is currently grinding away at levels where price action previously tackled $334-337. Market is overextended to that price at least.Note
2-day RSI hasn't peaked yet. Expecting to see a rebound tomorrow and final retest of highs before a more significant sell off. Momentum (RSI) is holding up well across longer time frames. Look for price action to make a move up Thursday (10/15) and Friday (10/16). There's a 'handle' formation brewing on the 30 minute charts. Once we break outside of that, expect a strong bullish candle running up to $361 to test resistance levels for yearly trend (parabolic). A strong sell-off candle will tear thru all of the price points we've negotiated over the past 2 trading days leaving the next line of resistance somewhere in the neighborhood of $345. Not ready to short this beast yet, but the framework is building up for a quick fall.
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