As we said yesterday we were looking for that dip below 190, and we have it already off the open.
Personally I think we can start testing longs very soon, as the bears start pressing their luck and getting greedy. Currently I am waiting for some type of stalling in this selling pressure to start getting back into the market with a long bias. A hold above 189 will be a great start, and a move back above 189.90 will start putting pressure on new shorts.
Obviously with this down move we shouldn’t go buck-wild – keep your stops tight. But I do love buying into this dip down here into support.
SPY 60-Min Broadening Formation Series:
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are you of the opinion that we’ve reached a bottom and have more upside past 1950?
I’m leaning more along the lines of a sell-the-rip mindset
Jury is still out on the 1950 break, but I am really thinking from a maximum pain perspective, we setup for a killer March/April and put the hurt on some bears. Weekly charts still don’t look great, Fin’s look miserable. If we can get any stabilization in oil and financials, i think we get a huge push from trannies/industrials/energies to push us higher. Overall too early to tell so not much conviction either way, March rotational inflows will be a huge factor.
True. I’ve been a buyer of TRN ever since earnings. I’m building a position but I think we have lower 2 go over 2016. When the rally comes it’ll hit trannies 1st
did we ever really get panic selling in 2016? i don’t recall a good old fashioned 10:1 down volume day.
@Matt_Bear
True… VIX has never really shown us the fire & brimstone on the down days.
Until I see that happen I’m selling rallies (but slowly accumulating transports)
Fantastic, still digesting this amazing call
It’s like magic — called that one WAYYY in the hole. 😉