Intermediate SPX Trades
Updated
Here's what I see on the 1-Hour Chart
- Pink rising wedge. I believe this is a strong rising wedge, having three points of contact on each side. As we know, this is a bearish pattern, but it is contained within the bullish green channel, so my first downside break target would be to that green support level. Second is to previous (short term) low, and last is to purple support/200SMA.
- Green bullish channel and Red Bearish Channel. These two really are cancelling each other out and forming a rising wedge pattern. While it looks like it could be a symmetrical triangle, the angles are actually +26 vs a -13, making it a weak rising wedge, meaning it is still bearish, just the probabilities are not as solid as they would be if they were more obvious.
50 SMA acting as resistance. This is bearish, until of course it breaks.
MACD: It looks like there is no current divergence, but the last divergence was bearish and may be still working itself out.
Volume: (Check SPY for proper volume) All of the rises are on weak volume, the falls are on relatively strong volume. I will post a screenshot of this if I don't forget... Bearish in nature.
Head and shoulders pattern potential, as shown via red lines.
My trades:
I am shorting until this breaks through the upper red resistance line, although there is an argument to be made that you could short all the way to 2790, but that doesn't work with my trade Risk/Reward. I am averaged in around 2725 (SPXS), and my three target levels are shown.
If we breakout above the 2800 level, I will be long, as I have stated in my Most Simple SPX chart.
- Pink rising wedge. I believe this is a strong rising wedge, having three points of contact on each side. As we know, this is a bearish pattern, but it is contained within the bullish green channel, so my first downside break target would be to that green support level. Second is to previous (short term) low, and last is to purple support/200SMA.
- Green bullish channel and Red Bearish Channel. These two really are cancelling each other out and forming a rising wedge pattern. While it looks like it could be a symmetrical triangle, the angles are actually +26 vs a -13, making it a weak rising wedge, meaning it is still bearish, just the probabilities are not as solid as they would be if they were more obvious.
50 SMA acting as resistance. This is bearish, until of course it breaks.
MACD: It looks like there is no current divergence, but the last divergence was bearish and may be still working itself out.
Volume: (Check SPY for proper volume) All of the rises are on weak volume, the falls are on relatively strong volume. I will post a screenshot of this if I don't forget... Bearish in nature.
Head and shoulders pattern potential, as shown via red lines.
My trades:
I am shorting until this breaks through the upper red resistance line, although there is an argument to be made that you could short all the way to 2790, but that doesn't work with my trade Risk/Reward. I am averaged in around 2725 (SPXS), and my three target levels are shown.
If we breakout above the 2800 level, I will be long, as I have stated in my Most Simple SPX chart.
Note
Oh yeah... usual disclaimer: This is for educational purposes only, I am not a professional investment adviser and this should not be taken for investment advise.
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