Morning Notes 04/17/19 Sentiment Timing Trading Environment-Short Term: Current Environment-Neutral/Bearish
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Hi Everyone,
Futures are getting another push higher this morning, which should come as no surprise as it has become the norm. I don't believe it will be a gap omen set up, but yesterday's omen played out fairly quickly. Remember, that TRADE set up calls for the gap to get filled if it gaps to new highs. We still have the open gap omen at 2889 that I believe will get filled as well. The other plethora of gaps below may not be gap omens, but if history is our guide, they will get filled as well. But that may not come until the "Kill Zone" time frame Woody has identified.
We are in the "Halo" time period as Woody pointed out in yesterday's newsletter and traders who want in are being forced to either buy at the end of the day, hoping for another gap higher open or chase the gap higher. This is how the "Kill Zone" sets traders up. They become hypnotized at the non-stop gap higher opens and when they all decide to just jump in, the overnight buyers turn into sellers and we see the bid removed and a mad rush for the exits.
My preferred pattern is looking for some type of sharp drop that finds support and comes back up towards these highs, as we enter the "Kill Zone" time period. That top may end up being a test of the highs left behind or a slight break above. That would be the move that gets everybody just jumping in as sellers are waiting in the winds. I still like a test of the 2700 for the quick move lower, but obviously these overnight buyers have to slow down their panic buying before that set up has a chance. These gaps are NOT bullish when all is said and done and the bulls that have an exit strategy aren't picking up that they all have the same exit strategy and why we see these melt ups followed by panic selling so often.
The range SPX range for today is 2916 high and 2907 low. (Gap Numbers) A break of 2916 the spx should try for 2919/2923. A push below 2907 we could see 2900/2892. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2916 R2-2919 R3 2923
Support Levels: S1-2907 S2-2900 S3 2892
Trending Pivots: Neutral
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1.) like our post with a thumbs up (each post)
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Hi Everyone,
Futures are getting another push higher this morning, which should come as no surprise as it has become the norm. I don't believe it will be a gap omen set up, but yesterday's omen played out fairly quickly. Remember, that TRADE set up calls for the gap to get filled if it gaps to new highs. We still have the open gap omen at 2889 that I believe will get filled as well. The other plethora of gaps below may not be gap omens, but if history is our guide, they will get filled as well. But that may not come until the "Kill Zone" time frame Woody has identified.
We are in the "Halo" time period as Woody pointed out in yesterday's newsletter and traders who want in are being forced to either buy at the end of the day, hoping for another gap higher open or chase the gap higher. This is how the "Kill Zone" sets traders up. They become hypnotized at the non-stop gap higher opens and when they all decide to just jump in, the overnight buyers turn into sellers and we see the bid removed and a mad rush for the exits.
My preferred pattern is looking for some type of sharp drop that finds support and comes back up towards these highs, as we enter the "Kill Zone" time period. That top may end up being a test of the highs left behind or a slight break above. That would be the move that gets everybody just jumping in as sellers are waiting in the winds. I still like a test of the 2700 for the quick move lower, but obviously these overnight buyers have to slow down their panic buying before that set up has a chance. These gaps are NOT bullish when all is said and done and the bulls that have an exit strategy aren't picking up that they all have the same exit strategy and why we see these melt ups followed by panic selling so often.
The range SPX range for today is 2916 high and 2907 low. (Gap Numbers) A break of 2916 the spx should try for 2919/2923. A push below 2907 we could see 2900/2892. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2916 R2-2919 R3 2923
Support Levels: S1-2907 S2-2900 S3 2892
Trending Pivots: Neutral