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SMP99
Oct 3, 2014 1:22 PM

SPY Fri 10-3 Inverted H&S Long

SPDR S&P 500 ETF TRUSTArca

Description

An inverted H&S that if confirmed would be give a price target just above 197 is worth watching. Also we have a gap below 197 that would be filled with this move. And finally 197.10 are is a 50% retrace of the recent down move from the ATH's. This area also represent the price range in which price broke down from for the move Wed/Thu. If SPY reaches this area i would expect some resistance around 197.
Comments
mike.lawler.969
197 is a good level for profit taking...if it goes to 198.....197 will probably be support, and one could reenter the trade if it makes sense
SMP99
Yes I agree. If it gets there that's area to watch
hehe
... this is very strong reversal formation Descending Broadening Wedge:

tradingview.com/v/hLU0fY8V/
SMP99
Was just looking at the possible descending broadening wedge on the spy last night. One scenario I think is a move back down inside the wedge next for bottom possible near august lows. Could set up for a large 191 to 198 move late oct. But watching the potential test of trend line near 197 for now.
giankee
Inverted H&S played out beautifully. The bounce off from yesterday's lows was pretty impressive. Today ES broke out of the descending channel it was in (hourly chart) for 2-3 weeks. On the 15 mins, looks like it's still inside that falling wedge...interesting to see how it's gonna resolve but yesterday's and today's action have been pretty bullish so I'm keeping a bullish bias. What do you reckon?
SMP99
Yes it did. I bailed before 197 when spy stalled at 196.75 but still great. For next week...before the bottom occurred I was more interested in what the bounce would look like as a tell of whether the market is changing. We were oversold and the bounce was likely due whether a new low is coming or not. Mon/tue may give us a better clue. I'm watching that downtrend line as well...see if spy can break and close above.
SMP99
If no close above that trend...August low retest could come quicker than people think.
mike.lawler.969
well we will get 197, and then proceed to 198, where we will hit resistance....with 197 being support...are u making real trades, or making predictions for fun
SMP99
real trades. The pattern i saw says 197-197.30. I'll be exiting my position at 197 and re-evaluate from there.
mike.lawler.969
I agree......then what
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