Green lines- Resistance or bull targets
Red lines- Bear targets
Yellow lines - bear flag
I wanted to focus on Smaller time frames with this spy since I'm now convinced that the correction has started and the only thing as a day trader to do now is to maneuver through the bounce backs and bull traps!!
Nothing on the Economic calender catalyst Wise until Wed. Also Chinese and Japanese markets are closed until Wednesday for holidays. That leaves us with Sept sentiment and Technicals to contend with.
Technically The Spy is outside its Bollingerbands on the 2hr and daily chart. Also we're Sitting really low on MFI; The Dow Jones also is showing similar Technicals and held its 34,520 support. The NDX closed right on wedge support at 15,330. Keep those 2 numbers written down because if their support goes they will drag the spy (See link). With that being said I think we have a technical bounce Monday so let's go over the chart!
Resistances/ Bull targets
443.22 - Formed tweezer bottoms on 9/14 and there was a rejection candlestick there on 9/17.
If it breaks over 443.22
445.25 - Was the trendline for the bear flag support. This will now act as resistance on any move up Monday
Finally if the spy is still rolling
446.99- Would be a gap close and final target IMO before Heading back down to complete H&S
SUPPORTS/Bear targets
440 - Alot of touches in that area on every time frame. To drop below here would mean either the NDX or Dow is tanking. I dont think they drop it below here just yet tomorrow ,But if they do.....
435.56- Gap close is at play below 440. If it manages to drop this low tomorrow you can definitely expect a bounce back Tuesday. Even during the March 2020 crash the spy show a measure of respect towards the Bbands.
Good luck which ever way your going. I do think we end the week lower no matter what the bounce does if it happens.
Red lines- Bear targets
Yellow lines - bear flag
I wanted to focus on Smaller time frames with this spy since I'm now convinced that the correction has started and the only thing as a day trader to do now is to maneuver through the bounce backs and bull traps!!
Nothing on the Economic calender catalyst Wise until Wed. Also Chinese and Japanese markets are closed until Wednesday for holidays. That leaves us with Sept sentiment and Technicals to contend with.
Technically The Spy is outside its Bollingerbands on the 2hr and daily chart. Also we're Sitting really low on MFI; The Dow Jones also is showing similar Technicals and held its 34,520 support. The NDX closed right on wedge support at 15,330. Keep those 2 numbers written down because if their support goes they will drag the spy (See link). With that being said I think we have a technical bounce Monday so let's go over the chart!
Resistances/ Bull targets
443.22 - Formed tweezer bottoms on 9/14 and there was a rejection candlestick there on 9/17.
If it breaks over 443.22
445.25 - Was the trendline for the bear flag support. This will now act as resistance on any move up Monday
Finally if the spy is still rolling
446.99- Would be a gap close and final target IMO before Heading back down to complete H&S
SUPPORTS/Bear targets
440 - Alot of touches in that area on every time frame. To drop below here would mean either the NDX or Dow is tanking. I dont think they drop it below here just yet tomorrow ,But if they do.....
435.56- Gap close is at play below 440. If it manages to drop this low tomorrow you can definitely expect a bounce back Tuesday. Even during the March 2020 crash the spy show a measure of respect towards the Bbands.
Good luck which ever way your going. I do think we end the week lower no matter what the bounce does if it happens.
