__________________________
I posted that symmetrical triangle on the 5-minute SPY chart earlier to add value for you short-term guys. As you can see below, the triangle resolved with a big move lower. Recall that periods of compression often lead to periods of explosion, and on this particular timeframe that is what we have seen. For those of you focused on that timeframe, you saw a nice scalp opportunity.
Now, the broader issue for me is how this development fits into a more intermediate-term perspective for swing traders. As you can also see below on the second chart, the SPY is still coming to terms with the upper end of a broad multi-month trading range. I have been discussing this concept ad nauseum in my video recaps of late, that when you arrive in a virtual straight line from the bottom to the top of a trading range, the presumption is that we have some “work to do” at that level before there is the next big move, in whichever direction. This is simply my “going to the mattresses” concept applied with the chart flipped upside down, but the same thesis holds true. It does not guarantee any major top or bottom forever, but it does give you an insight into how your market posture should be for now.
__________________________
__________________________
Great post, but I liked the old pictures better
They’re not old. I am just mixing it up as usual.
fantastic call with the 5 min triangle chart.
I liked this photo, found it very apropos.
That said, thanks as always.