SPY's Hidden Bullish Divergence CATAPULT with Volume
VPA Analysis on SPY:
(1) There is an anomaly in Volume+Price on June 4th and 5th:
Long-Legged Doji w/ high volume implies is a warning sign that the trend will change back up, but not a signal.
(2) On June 8, 2015, we have another anomaly:
The volume today (June 8th) less than average, yet with a large candle? A strong result needs a strong effort, but here we have a strong result with little declining effort. This is an anomaly that can be clearly seen!
(3) The HIDDEN DIVERGENCE CATAPULT at Potential Support:
Prices are still around the 208.45 to 209.46 support area. The same areas of the W1 50% Fib and the W-a 61.8% and 71.8% fib. This is also the same area of previous horizontal support with HIDDEN BULLISH DIVERGENCE on the MACD and Stochastic.
(4) The KEY here is having HIDDEN BULLISH DIVERGENCE at support levels, and not just using this tool by itself:
So, If the 208.47 (71.8% fib located at (y) on the chart (or the 207.47 area the 61.8% located on the chart) are truly areas of support, then there is hidden bullish divergence to confirm this trade and support a movement upward toward the 215.24 WAVE-3 (z) price level. An alternative Wave-3 is its extension to 220.46, but I will remain conservative with a projected target to 215.24, until further analysis at that level.
Further things to look out for:
Bullish divergence on an 1 hour or 4 hour chart at these support levels.
Now, we just wait and see if this trade works. Anything can happen, but the odds are in the bull's favor going forward.
(1) There is an anomaly in Volume+Price on June 4th and 5th:
Long-Legged Doji w/ high volume implies is a warning sign that the trend will change back up, but not a signal.
(2) On June 8, 2015, we have another anomaly:
The volume today (June 8th) less than average, yet with a large candle? A strong result needs a strong effort, but here we have a strong result with little declining effort. This is an anomaly that can be clearly seen!
(3) The HIDDEN DIVERGENCE CATAPULT at Potential Support:
Prices are still around the 208.45 to 209.46 support area. The same areas of the W1 50% Fib and the W-a 61.8% and 71.8% fib. This is also the same area of previous horizontal support with HIDDEN BULLISH DIVERGENCE on the MACD and Stochastic.
(4) The KEY here is having HIDDEN BULLISH DIVERGENCE at support levels, and not just using this tool by itself:
So, If the 208.47 (71.8% fib located at (y) on the chart (or the 207.47 area the 61.8% located on the chart) are truly areas of support, then there is hidden bullish divergence to confirm this trade and support a movement upward toward the 215.24 WAVE-3 (z) price level. An alternative Wave-3 is its extension to 220.46, but I will remain conservative with a projected target to 215.24, until further analysis at that level.
Further things to look out for:
Bullish divergence on an 1 hour or 4 hour chart at these support levels.
Now, we just wait and see if this trade works. Anything can happen, but the odds are in the bull's favor going forward.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.