The selling started as soon as the market closed on Tuesday In fact it was one of the easiest pattern breakdowns to spot. I saw it clearly, and traded accordingly, building position size.. at will.
As I show here,S+P Futures Dec 2019 ESZ Ascending Trend Line to the "Ascending Wedge" Pattern has been "violated "in overnight trading on 11/20/19
See that red bar breakdown,outside the wedge triangle ? Look closely. I put an arrow next to it. Now look again.
I have been waiting patiently sinc mid October for a good shorting opportunity, but they all seem to fail. I hope this one is different. the uptrend has no momentum, just a slow grind up. Time to finish it up! I hope i wake up to a few nice big red candles. The setup seem too good to be true... 10:1? I guess first we have to shake the weak hands out, then we go down the slide.
The buyers and algos continue to step in and buy at the 2hr 50 DMA. Just looking at the SPY this morning, and it reversed back up at the 2hr 50 DMA. This has been going on for 5 weeks now. I can't believe it will last much longer but who knows.
Of the algo's and the buyers, who want in
of course.that's what they do.
Systematic approach to buying declines, works every time in this market.
Until it doesn't...
DaddySawbucks
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It has very characteristically risen back to the breakdown point and been rejected. This is a classic downtrend initiation pattern. Now is short entry IMO.
supere
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For those that are scared to short, this time we have confirmed h.o. and titanic syndrome signals which when simultaneity triggered with a down turn in MCO almost guarantee a 10%+ drop. The signals started on Friday and I believe if we close red today the mco will also turn red.
uros
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@supere, Looks like its another failed attempt by bears. And Fridays are usually up days so are we heading back to ATH before todays close, @The_Unwind ?
It appears the breakdown to SPX 3091,this week
could have served the purpose of shaking out weak handed longs. and establishing a new support zone below 3100
If that turns out to be the case, then a run back to the ATH would appear to be the expectation here,
unless the market reverses and takes out 3091 support.
Keep your eyes on the VIX for clues..
supere
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@uros, yes looks like today's action and close shall be very important. Safer to stay out until 3100 is sharply broken.