So don't be fooled. I laughed when I saw this coming over the weekend. I am sure there will be alot of confused people this week.. especially the kids trying to day trade. Good luck. Remember, lower low, lower high... and 350 is not the bottom for the markets. Not even close although it will see a bounce there.
I am a new trader, but I have been watching SPY movements closely. It has been consistently hitting lower highs every Tue/Wed for the past 4 weeks or so. The lower high is retested and then it falls again. Based on that pattern, the next lower high was reached today and may be retested before it falls to an even lower high/low, probably in the $370's range. Unless something changes drastically, I expect SPY to fall to the $370's by next week.
Leonie2022
⋅
@Leonie2022, So far, I was right. SPY retested today and again, it reached its higher low of the week (I believe). I expect a significant drop tomorrow. Why? It did the very same thing almost 4 weeks in a row, the trend still holds. $397-400 is a point of control with the highest volume profile and strong resistance - this level also coincides with my fib retracement set up. Unless SPY breaks above $401 and surprise me, I think we are in for another round of massive sell off. Let's see what happens tomorrow and Friday.
Original_Stock_Whisperer
⋅
@Leonie2022, agreed.. I am curious to see how we close out Friday. That will be telling. Market still has a long drop ahead but thinking we may see a bounce coming up in June. Well see..... Friday should provide a little bit better clarity.
GregStocks
⋅
It's been very interesting to watch. the SPY keeps trying to fight its way above 390 but each time is does hit a lower high it runs out of energy quickly and trails off... I see 380 or into the 370s this week as well. These little bounces look scary at times b/c they happen fast but then they never turn into a long rally. Been buying puts on each spike. Looking for a 388 close
Steversteves
⋅
The book finally came in today, quickly glanced through and I like it so far! Will begin actually reading it tonight. Thanks for the suggestion!
@stein3d, Getting started with chart patterns. Just started reading it. Obviously it takes a completely different approach than I do in trading and some patterns I have seen him talk about disagree with my own experiences, but I am keeping an open mind. But literally just got halfway through one chapter on strong buy signals (skipping other chapters of course, like I do in my grad degrees ;) )
Original_Stock_Whisperer
⋅
@Steversteves, I combine this with math ( a different math than you do) and you'll be amazed. Keep an open mind and make sure you are looking at the same things. And nice! If you were to read any book, these are the books to read. You will be amazzzzzed how they work out.
Steversteves
⋅
@Original_Stock_Whisperer, Yes! And I actually take that last comment back because I see he made the distinction that this doesn't work well in bear markets haha. Which has been my only experience with them. But yes! I am excited to diversify my knoweldge! I would love to be a great market statistican AND a great chartist like you ;)
Original_Stock_Whisperer
⋅
@Steversteves, lol.. stop. Just read. It's a great book and he has many great books. I am serious, watch how things work out if you follow whats in them. Combine it with math, do some swing trades and honestly, you should never lose a trade again. Completely serious.