cerealtrades

.618 retracement seems like its a buy for broader markets (SPXL)

Long
AMEX:SPXL   Direxion Daily S&P 500 Bull 3X Shares
109.56 would be a great higher low to put in if we get bounce into the end of the week. i trust that if we keep cloaing over 105 on the daily that we will be back up at 123 in a couple weeks time.
Comment: heres the hourly potential levels and paths
Comment: i have marked out additional areas above and below and thrown on fib extend and vwma
if we really start to drop look for vwma to continue down.
if we are printing a low rsi will diverge bullishly off of oversold qqe will enter long and we will get confirmation close above vwma.
Comment: even if we drop 4hr to daily im still bullish on the weekly chart
Comment: Something tells me we may have just seen the bottom. I'd like to have confirmation of a reversal before I say bye bye to the lows, but it's looking somewhat promising although all my targets have failed so far.
Comment: Long target still upper 122s
Comment: There's nothing saying that we will hold the previous double bottom. I don't imagine this market has many supports besides the ones I marked out in the 90s. In case I haven't made it clear I don't think a double bottom is going to fly here. Volume suggests that stops are being hit, but momentum is saying it's not leading to a daily trend change. A lower low may hold but I wouldn't trust the bounce to get back to all time highs within a reasonable time.
The old levels are still in play, but this new level is the most important target because it places the pivot below recent lows and takes volume into account. People are playing with this idea of a daily double bottom running into a weekly double bottom, but there is no reason to think the low will hold on either timeframe.
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