ratchet-mint

ratchet-mint

As the SPY creates a strong downward trend, we see the RSI is close to being oversold giving an indication that selling should settle down soon and smooth out.

ratchet-mint

SPY has clearly broken downward outside its 3 month long trend rally and is now trading mostly flat. Despite losing its running streak the RSI has gone from overbought into neutral range while price action trades flat. This gives us a signal that buying strength remains stronger than selling.

ratchet-mint

Today has given mixed signals with what started out as a strong gap up on trade news lost basically all ground through the whole day with a spike in selling volume just before close of the day (bearish signal). RSI going below its support trend line while price action retreats to stay inside a support trend line (bullish signal).

ratchet-mint

We can see even as the SPY creates a lower trend now trading in lower support, it still gives bullish signals via the price action and RSI. We note the RSI moves lower overall while the price action is trading more or less flat as presented with the horizontal green trend line. This is coupled with smart money pushing the stock back up at the close for the...

ratchet-mint

SPY is now trading below its lowest trend support line since in 3 months. This is occurring as RSI plummets. We will need to watch how price action correlates with RSI trends.

ratchet-mint

SPY has showing a trend of testing its support line and even trading below it over the past weeks. To add on to this, the RSI is now indicating it is over bought. Repeatedly testing the support line with an overbought RSI means this upward trend is closing. We should expect a change in the trend to a bearish sentiment soon.

ratchet-mint

We can see that SPY is starting to trade in bearish territory by repeatedly testing its line of support and even trading below on multiple occasions lately. Keep a close on this growing pattern as this latest rally is loosing steam.

ratchet-mint

After forming a bullish wedge pattern yesterday, we see that upward breakout occurred with a rally in the early morning hours. This currently puts the stock price back into its longer term trading range. Its best wait the day out see what smart money thinks tomorrows direction will be.

ratchet-mint

With the SPY trading below its recent trend past its line of support, it created a new bullish signal of a broadening wedge. It is completing this pattern with the 4th point (2 points on each side), so we could be seeing a breakout in an upward direction.

ratchet-mint

We can see from the trend over the past 2 months that SPY is now passing below its current support and re-testing a new lower support defined in late Dec and early January. At this point its quite undecided which way the market wants to go as the days have opened to much selling followed gains in the later day that attempt to bring us back to previous close....

ratchet-mint

As the Bull Trap comes to a close, it reveals itself to what it really is. The most prominent selling does not occur until noon ET which is a strong indication, the smart money feels the down trend is the new direction. By monitoring price action through out the day, we will get an even better idea towards the end of the trading day when the smart money will...

ratchet-mint

Stocks are mixed with indicies and ETFs crossing the trend line to denote a change in the bull trap trend the market has signaled lately. Selling volume has also increased at a higher pace than compared to buying volume we were seeing during the recent upward trend further indicating a down ward trend is likely.

ratchet-mint

Although the charts showing bearish narrowing wedges in the price action and RSI, we saw a breakout in an upward direction. To identify the strength of the breakout, we look to the volume and see that it has quite low buying volume indicating this upward trend does not have much steam and will reverse course down ward soon.