Markets did gap up , then breakout to last 3 days highs , but then came sharp down again to 1190 level before getting flat end of day.
Either way - markets did quite nothing today other than just moving sideways for another day....
Usually from what I learned in the past - when markets has been down up huge (From 1100 SPX to 1200 SPX) and then moving sideways/down - thats usually a bullish consolidating pattern before breaking out higher.
So the game is still to buy the dips and accumulate , as I think markets warming up for a bigger break above 1210 to move to 1260 next which is my first objective target.
Markets usually stretching both bulls and bears - and 1200 where the first logical plays to go short in markets - I dont think they will make it so easy for the shorts.... we really need to make some big bears cover - so we are going to se a rip off rally to 1260 soon.
We have a big support area 1170-1180 as stated before - if we go down to 1170 we might have an inverted HS pattern forming with the right shoulder in - but I still believe we are close to reach 1260.
This pattern since the bottom might also be a kind of "cup and handle" in the works ....
The chart pattern targets we broke out of is still 126 on SPY - looking at euro FXE right at neckline , a breakout above this neckline seems likely... target 150 FXE. Also TRAN looks bullish to me , cup and handle + pullback , right below trendline and ready to rock hard... imho.
Conclusion: Either way how you break it up , IF we pullback - BUY it - stay long and Im long from TNA 37-38 still swing trade where I added 44.8.
By the way Im looking for a near term drop in Gold and Silver soon from here ( some weeks )
Have a nice day
Hi Sqwii, when do you think the projection of SPY 126 will be reached? By next week when your Fib cycle hits?
ReplyDeleteAppreciate your work and your blog. Thanks!
Garesky
ReplyDeleteSPY 126 could very likely be next week , my fib cycle hits end of next week - so there is still time for a pullback before higher.
Markets down right now pre-market to 1177 on futures - so as long markets stays above 1170 its about to buy the dips. Remember its OPEX week and we have some wild swings up and down - so we might even start to rally before weekend above the highs recently.
1161 pre futures, so we don't buy the dips anymore, and wave 5 to come ?
ReplyDeleteI'm a buyer on this morning dip today - but lets see how markets is opening today :-)
ReplyDeleteAre you still a buyer this morning Sqwii? it dropped like a waterfall this morning.
ReplyDelete