Frame your trade is more important than what indicator to use or what line to draw.
I think that the long term support here will break. If so, short away to the double bottom.
Today, we saw the break and hold below of an important long term trendline in effect for months leading up to now, as well as several strong points of support. Rationale for short: - Break of lower bear flag channel trendline & hold - Successful retest and rejection of trendline. - Broken support at 206.80s and 206.00s - Huge bull rally immediately and...
This is the short term view. I will post the long term as well. The past four market days have seen a large increase in volatility, as the bears and bulls fight for control in this range. Today saw a large gap down, and a reasonable attempt to stay above yesterday's lows. These lows happen to be very strong resistance from all of last week as well. The price...
Exuberance aside, this looks and smells like the real deal. Look out below?
We have been in similar circumstances and this market feels much like 2007/2008 to me. While we are currently over monthly moving averages, the Stocks above their MA50, the Coppock Level and the Squeeze Indicators all suggest prudence. Then again, based upon the VIX and TVIX's price, there isn't much volatility in the markets, right? Smirk.
I am seeking to use this indicator as an early warning and see that had it been watched in middle of August, it appears to have been signalling the last breakdown. There are a lot of trends that show up within this chart which I don't find on other various indicators.
From the past two appreciable declines in 2001 and 2008, there appear to be some trend lines worth watch, in case current price action follows similar patterns.
I suspect this gap will be filled prior to making new highs.
I'm anticipating we fill one or both gaps prior to making any new highs.