The charts are pointing toward a very weak opening to 2016. Ready for the carnage?
On the SPY weekly chart we have a reversal-setup: the strongest, most effective short-term indicator we look for. From a technical mechanics perspective we have the following:
1.) The last week of the year, SPY and DIA went inside week and up. New longs are now long SPY above last weeks highs of 206.33
2.) Shorts are beginning to get stopped out as SPY climbed above 206 and tested as high as 208.
3.) A trigger of this reversal setup, below 203.94 (this weeks lows), brings back in new shorts, and longs from the prior week are being stopped out.
4.) Time Frame Continuity – Depending on the opening print, it is safe to assume if/when we take out 203.94 we will then be red on all time frames: Day, Week, Month, and even Year.
Full Time-Frame Continuity + Reversal-Setup = CARNAGE.
As SPY began to break below 206.33 yesterday, I started a small short position. If/when we take out 203.94 I will be adding to it with massive size.
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BlueStar would be proud.
Thx 4 the post. Good stuff you got on here sir.
thank you!