SPY STABILIZING AROUND IMPORTANT SUPPORT. WHEN TO BUY?

SPY is showing some signs of bullish price action around an important broader retracement area. If price can stabilize in this area, it will keep the broader bullish trend intact and new swing highs beyond 198.82 would be a reasonable expectation. I am looking for swing trade longs upon a pullback into the 189.81 - 190.51 area if validation occurs there or at the 191.23 area which if it validates, would be a higher low. Any close below 189.50 would cancel out this idea and open the door to further weakness. I will also use this as a reference point to gauge risk. 193.23 is my first target, followed by 195.78 area. These are conservative and average target. If you can afford to let your winner run and want to give a new high a chance to be retested, that is a reasonable expectation in light of the current trend.

I conduct this analysis using a step by step methodology that facilitates objective pattern recognition, price level anticipation and a simple validation process to provide exact entries and exits. The premise of the methodology is natural to the market and can be applied to stocks, futures, forex and even options. Read my article about the elements of consistency at www.unconventionaltrader.com/321