The Honey Hole is a setup that bears love…basically, the index approaches the major moving averages from below. The trade is to fade the move, relying on the moving averages for resistance.
There are currently both moving averages (50 and 200) providing resistance, as well as the downtrending resistance line. This could be a serious bearish trifecta.
Could the SPY just break through all this resistance without first backing and filling? Sure!
I’m betting that it won’t.
Wood, you nailed it! I jumped in some TZA this morning… let’s see how far this thing can run! Thanks for the setup.
right there with you via BGZ
But I don’t plan on being there for long.
Thanks for breaking it down Wood
Zzzzzz.
Strange assumption it’s going to backfill and then breakthrough, when path of least resistance is back to sub1000.
Keep buying them dips bulltards!
“Could the SPY just break through all this resistance without first backing and filling? Sure!”
What’s strange is that nothing in that statement says that I assume it will backfill and breakthrough.
You did note that I was betting AGAINST a breakthrough of resistance, no?
HELLO?
Could the SPY just break through all this resistance without first backing and filling? Sure!
” I’m betting that it won’t. ” <== READ Slopey Dope!! I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t. I’m betting that it won’t.
Good job wood!
still looks like a bad formation of a cup n handle, but still look as though the handle wants to form,right at the cross. yes -no
I do not see a cup with handle. Where are you seeing one?
All of the pullbacks and moves back up have been too steep. I cup would be a good deal more rounded.
woodshedder,it looks small compared to a large rounded cup.where your circle is,just to the left of that,regardless of the deep spike down,right at your circle, its small,but where you got the small circle drawn,the candles at that spot look to want to form the begining of a handle. the ibd posted the spy chart saturday @twits they showed the same chart describing the cup and handle.although a cup does show a larger rounded cup before the handle,the cup that looked like it was forming,looked failed because the bottom came out,which is that spike you see underneath where the cup was trying to form. but what i do see is the “paltry” forming of a handle, which would be the 3 candles at the end. sort of like a v shape.if tomorrows close candle stays next to the current candle where your circle is drawn,wont we have consolidation/basing happening. very small but you can see it. thanks Woodshedder for your work, just started following your posts,they rock. chris