S&P Starting to show stress (9 Season Rainbow)
The Nine Season Rainbow, by some sort of black box logic unbeknownst to me, is starting to show stress similar to when the dump happened in February. The Purple box shows the signal was in on the lower time frames and the EMAs quickly crossed bearishly. From there the spill was intense and the 48 period EMA was very controlling n the way down, locking in the first bear trap around $2100.
The orange box shows where a wedge and another sell signal on the Rainbow triggered and I have to admit, I played this for a small loss. I was in the money and didn't trail my stops down and when I got no where near the performance I was expecting I had to close for that L.
There was a similar signal at the apex of that wedge that I let go by and I am currently in SXPU as of the beginning of the fuscia box. The open of 2020 has been support and resistance for about seven months and I am betting that it will continue as resistance. The Covid deaths in the US are picking up (please see the linked post for that) and now the 9Season Rainbow is showing a potential roof is in.
The rising wedge has turned into a double top but despite any resilience in that formation it is still setting a lower high from the purple box. If resistance is clearly broken then there is only blue sky upside but that is still a minority position of mine.
The orange box shows where a wedge and another sell signal on the Rainbow triggered and I have to admit, I played this for a small loss. I was in the money and didn't trail my stops down and when I got no where near the performance I was expecting I had to close for that L.
There was a similar signal at the apex of that wedge that I let go by and I am currently in SXPU as of the beginning of the fuscia box. The open of 2020 has been support and resistance for about seven months and I am betting that it will continue as resistance. The Covid deaths in the US are picking up (please see the linked post for that) and now the 9Season Rainbow is showing a potential roof is in.
The rising wedge has turned into a double top but despite any resilience in that formation it is still setting a lower high from the purple box. If resistance is clearly broken then there is only blue sky upside but that is still a minority position of mine.
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