Let's Review June 9th Through June 17th On SPY Part IMany of us know what Market Cycles are but, do you understand how to trade them & what to expect?
Here with SPY on the 1hr chart. Prices entered a range from May 27th to Jun 9th. If read correctly, you should have prepped to get short on the the support break of that range.
That range was considered a distribution area & once it broke, you should expect a trend down.
At 1:30 on June 9th, that range was broken & a trend was triggered.
Traders should have got short & stayed short. On Jun 17th with the last sell climax, traders could have look to take profit & reposition for another range & trend reversal up.
1st target, if looking at the pattern should be the bottom of the bull channel. If looking at price, the 1st target could be the GAP between 383-389.
The range from May 27th to June 9th should have been a signal to look for short entries either inside of the range or once it broke.
Trend reversals can be some of the best & easiest trades to spot, especially on the hourly charts.
