From the monthly chart to daily chart, the divergence is there. What does that mean? Heed Fly’s warning!
From my perspective, trading in the near future is going to be a day-to-day affair. Swing trade no more than 1 day to the next. Anything that is 2 days or more and you are opening yourself to a surprise party; not necessary in the positive light…
Below is the daily SPY chart. Did you see that last 2 times, after a small range bar was developed from the spike-up, the oscillator headed south along with prices. Did you also notice that on the 2nd short-range bar (see yellow arrow with the #2), the oscillator below was lower than the previous oscillator high. And if we are heading south going forward, it will confirm the 3rd short-range bar (see yellow arrow with #3) as the pivot high and the oscillator will head down from here. On top of that, notice that current oscillator high is lower than the previous oscillator high as well. This will confirm a solid divergence if prices head south tomorrow.
Again, all this will depend on how price actions end up tomorrow. If prices head south tomorrow in a intermediate to big way, it may confirm the high of the 3rd oscillator and a repetition of the 3rd retracement.
FWIW, see for yourself in the charts:
Below is the daily SPY chart:
Below is the weekly SPY chart:
Below is monthly SPY chart:
The market will always be around; but you may not be if you don’t protect yourself. Trade safe and trade with discipline!
Good Hunting!
If you enjoy the content at iBankCoin, please follow us on Twitter
I picked up some $SPY in the 128’s back in June. Today I cut it loose. As such, $SPY will go straight to $160 in the next couple of months. So it has been said, so it shall be.
Congrat on your win!
As to taking off to $160; that will be another play when the time comes.
.
Trading Journal:
Bought starter position in TZA and SKF with stops below today lows.
Trading journal:
Stopped out on TZA and SKF for tiny losses.
Bought back half of what I stopped out earlier on TZA and SKF.
Need to work on my stop level to give them more room to work with.