SPY/QQ Plan Your Trade For 9-17 : Top PatternToday's Top pattern suggests the markets will melt upward in early trading, finding resistance, then rolling over into a moderate downtrend.
A top pattern is very similar to a reversal pattern. Where price moves higher, finds a key resistance area, tops, and then rolls downward away from the resistance area.
In today's video, I take a quick look at RSP, the equal-weighted S&P500 ETF, where price levels have already moved to new ATHs. And this may be very important for all traders to consider.
If the equal-weighted S&P ETF is moving to new all-time highs right now, while the QQQ and SPY struggle within the Excess Phase Peak patterns, it may be just a matter of time before the SPY invalidates the Excess Phase Peak pattern and moves to new ATHs as well.
The QQQ may be a different story as that chart still shows quite a bit of upper price range before invalidating any of the Excess Phase Peak patterns.
Therefore, I suggest traders stay very cautious today and tomorrow as we see how things play out. Right now, I would suggest the topping/peak pattern has about a 60% probability of playing out successfully today. Those ATHs in the RSP are more indicative of a moderate melt upward instead of a rolling top pattern - at least right now.
Gold and Silver will pause a bit ahead of the Fed rate decision. All markets are in a "wait and see mode" ahead of the Fed. This is another reason why you should not be overly aggressive in your trading right now.
Bitcoin is attempting to FLAG again - moving into a tighter, more consolidated price range just below $60k. I still believe an explosive upward price trend is building for BTCUSD.
I believe we will see an explosive upward price trend setting up just before the elections across the SPY/QQQ and other markets as well - we have to get through the next 45 days of consolidation and uncertainty ahead of the elections.
Get some.
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