MARKET THOUGHTS 10/14/22Grab a cup of coffee, wake up and read up lol
** (Not a Financial Advice, just sharing my own opinion and the process I do in the morning before I make a decision to trade.) **
As you guys are all aware the SPY went nuts yesterday, anything is possible in the market these days lol. Once the shorts got squeezed above 354 and FOMO kicked in it ran like it stole something :rofl: .
Now as you get ready for todays play here are things you should consider based on the charts and technical analysis:
- SPY, yesterday, just showed a possible sign of short term reversal from the divergence we've been talking about in the stream the whole week.
- The bounce was larger than expected and larger than usual, when a move like this happens one direction, there's a possible consolidation day the next day or pullback, unless volume continues and breaks above key levels continuing to squeeze the shorts and FOMO continues as well.
- If you are planning to go Gungho on going long, zoom out first and see the trendline on the daily and the pre-market action on SPY and where its at currently (See Chart Posted).
- Break of that trendline upwards can mean retest of the next resistance and probably even retest the next trendline up, but SPY has done its weekly range as of yesterdays candle, so slight chance it will continue breaking to the upside and do another big run. If anything, possible pump then pullback.
- The VIX on the weekly hit that trendline we talked about on the streams this week too causing the downward direction which usually does the opposite of the market, hence the run up yesterday.
** Scenario 1 ** VIX bounces above 9ema on the daily and stays above, market pullback.
** Scenario 2 ** VIX breaks below the 9ema on the daily, it will have about 1-2points max move today. Which can mean a pump in the market and will hit exhaustion, so pump and dump. (See VIX Chart Posted).
SPY
VIX
