nmike

SPY weekly update

Long
BATS:SPY   SPDR S&P 500 ETF TRUST
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This week SPY temporarily fell below trend line but managed to close above it.The CCI (50) is still above +100 and EFI well above mid point. The EFI (21) and CCI (50) above/below mid point have been a good indication of both long term and short term trend shift on weekly frame. I have shown on this chart how you can use CCI & EFI to spot bottoms.When you have extreme readings in both CCI and EFI with significant divergence more often then not it's an indication of a bottom or top.

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Are we looking at new support here at these levels? According to your chart, the answer is yes, but, what are your thoughts since seeing it all unfold. Sincerely, Beauty
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nmike BitcoinMedusa
Hello Beauty, you can CLONE the top trend line and you get a nearer term support
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>>>> the power of a simple trend line
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>>>>> still within rising wedge and above 10 ma
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>>>>> a positive move up last week , a hammer bounce right at trend line resistance and a Fib levelhttps://www.
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CCI & EFI present the divergence from bottom in a very clear view. Any ideas of how a market top divergence would play out on this chart?
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nmike james.manning.58
@ james.manning.58, first of all before I look for divergences I always looks at candle stick price action first. SPY candle stick price action is still bullish, we finished the week with a bullish 3 white soldiers pattern. If candle stick reversal patterns start to emerge then I look for divergences. As of this week we do have a minor divergences in CCI & EFI but NO major divergences.The first sign of a breakdown will most likely be the EFI below mid-point & CCI below +100. Take a look at this monthly chart on divergences
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....no weekly reversal candle stick pattern yet
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Like this cloning idea
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....new high last week, no sign of a top,CCI above +100. Alright JR here's some CLONES for you .
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