The SPY weekly bar now shows a Doji bar. In other words, last week price action was a [PAUSE] and the direction was NEUTRAL.
Although we have a higher high and higher low; a Doji at this point is actually not a good sign for the bull since Doji can sometimes represent a “topping” of the chart; a point suspended in mid-air before turning the corner. Doji bar generally meant that neither the bull or the bear won the battle for the week. However, a long-tail (from top) meant the bull gave back a lot of gain before settling back to the week open price.
From here, I’ll watch how coming price action move relative to last week closing price. If price action starts the week trading below Friday closing price, it is considered bearish. And if the price action takes out last week low, even more bearish. Nevertheless, if it trades above Friday closing price with a low that does not drop below last week low, the bull may still be in charge.
Based on Friday after hour price action and current Sunday night price action, it sure looks bearish to me.
Good Hunting!
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Nice. We’ll see how tomorrow goes.
I believe you are doing quite well here with your TZA. Congrat!
Didn’t buy TZA or SKF since the gap opening. I’m patiently waiting for some retracement to buy in.
Meanwhile, I sold some of my long-term holding and raise cash to 87%.
YTD gain is 17+%
Short SP500 e-mini @ 1,308.50 for a possible trend continuation @ 02:30pm time-of-day play.
Stopped out of my e-mini trailing stop for a day trade gain. May re-short if intra-day low is taking out later.
Bought TZA a bit below $21 with stop below today low. Not much of a retracement but I take what I can get.
Bought a starter position on SKF with stop below today low.