Each week I put up my thoughts on the current market direction and any patterns or support/resistance levels I see on the charts. You can read more about how I trade here. You can read about my 3 core trading strategies here. For my take on trading breakouts, read this. For my ideas on market trend analysis, read this.
Alright, so it’s Friday night and I’m watching The Force Awakens — again — because — well, I have no idea! This movie is strangely relaxing — and it’s full of people on quests — just like we are on a quest to make lots of money in the market.
Anyway — let’s take a look at the charts and how $SPY may have just lost a crucial level of support.
The hourly chart is showing a pretty pronounced head and shoulders pattern and if it plays out according to plan we should be seeing sub $200.00 prices soon.
Here’s the daily chart with the deteriorating support at the 50 day MA. If this gives way next support is at the 195 mark.
The weekly chart is starting to look pretty intense with this massive looking top formation. Of course, we’re way too close to highs to say at the moment — but I’m watching it closely.
- Hourly – Down
- Daily – Sideways
- Weekly – Sideways