SPY/QQQ Plan Your Trade for 8-8 : A Volatile Harami PatternToday's SPY Cycle Pattern is a Harami/Inside.
Because of the recent price volatility and the current price FLAG setup, I expect today's Harami pattern to include a fairly large high/low price range. That means we may see very solid price trending (up/down) throughout the day - whereas today's open/close range should stay within yesterday's open/close range.
If you've been following my research, I expect the SPY to attempt to mount a fairly strong rally over the next 10+ days (possibly longer). After the recent bout of volatility (the Kamala-Crush), I believe the US markets will attempt to move into what I'm calling a Vortex Rally based on simple fundamentals.
In order for this to happen, we need to see a few things happen:
- the US dollar continues to strengthen
- crude oil should continue to slide downward (possibly targeting $65)
- IYT (TRAN) should stay somewhat muted into the end of this year
- Gold/Silver should continue to move upward
- Global markets should continue to struggle
If this happens, it will strengthen my Vortex Rally expectations into 2025 and beyond.
Remember, the SPY Cycle Patterns are not always 100% accurate. But they can provide a very clear context for expectations, and when used with other TA techniques and proper risk management - they can be incredibly helpful.
Get some.
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