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tipere445
Jul 29, 2018 2:40 PM

2 days consolidation, then better picture 

SPDR S&P 500 ETF TRUSTArca

Description

Good day folks,
Quick recap: we have an uptrend within a larger uptrend. It is bullish on an intermediate timeframe, life is good, no need to panic. The lately smaller uptrend is sitting on support, and it is holding (for now).
• I think that we are going to see consolidation in the first 2 trading days this week (see symmetrical triangle);
• We could see a bounce up, followed by a small selloff (green dot line). It is common after a selloff like we had Friday;
• I will be trading this consolidation both way, using weekly options;
• As you can see by the green dot line, if it happens this way, this would make a Head & Shoulder pattern on the chart;
• I’m gonna wait to see which side the breakout occurs (up or down of the triangle) before opening a new position, as I am not convinced yet of where the market is heading. The indicators (50 MA, RSI) look bearish though.
Cheers,

Trade closed: stop reached

Did not work out.
Comments
DaddySawbucks
Yeah it's looking beary; pullback may last more than a few days, although if AAPL beats there could be a lift Weds- briefly. Good luck!
tipere445
@DaddySawbucks, I opened a long before the close, let's see how far it can go.
DaddySawbucks
@tipere445, I'm sitting out- been so whipped again, dammit. I did make bank on the puts before they went into the crapper though!
DaddySawbucks
Agree, probly still too soon to get a big short position. Possible shallow pullback then higher by week's end. Unless it breaks...lol
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