Yesterday I saw a bearish pattern on the 5 day chart SPX forming - a topping hs pattern with right and left shoulder at 1225 , head at 1230's and neckline at 1210. Therefore I took a loss in TNA from 43$ and took loss at 40.75$ yesterday as I saw this pattern and moved into TZA to make a daytrade quick when we dropped big last 1 hour. After the last 1 hour I got into swing trae TNA again (just at a lower price 39.6$) and holding for a swing.
What we got right now is a MAJOR bullish 30min and 60min divergence on the MACD ,, we see that the SPX price is making a lower low - but the MACD is making a higher high , which is bullish - not bearish.
So for now the pattern targets 1190-1200 area ,, and I still have little cash left IN CASE we drop to this area on Tuesday.
Either way ,, I'm very bullish now and therefore I think the downside is very limited and I'm still looking for rally to 1270+ (the recent highs)
Conclusion:
Sold TNA 40.75 ,, got TZA for a daytrade and made 2.4% on it last hour ,, then got back into TNA swing trade at a lower price 39.6$. All those things is explained in the www.nwatrading.com so all were prepared ,, if you want this join us live in the chat room.
Overall we have 30min and 60min bullish MACD divergences which tells me a major rally is underway - target is 1270+ for this rally still.
Have a nice day
The low at 1202 yesterday was near the 61.8% fib, once we hit that, we got a positive divergence on the hourly timeframe. My guess is that the low was made yesterday and now we should rally. However, my target is 1250-1255 unless the rally proves otherwise.
ReplyDeleteYes thats a good point ,, what I see is a A rally from 1158 up ,, then B finnished and then C up to 1270+ possible 1290-1330 coming. lets see how strong this push up will be...
ReplyDeleteAre you talking about elliott wave ABC? After C resumes bear market right? Thank you
ReplyDeleteYou're doing good lately!
ReplyDeleteGood wishes for Christmas :)