At resistance range and at breakout level, upholding factors is the IHS - got to watch ....
Trade idea...if it breaks out of the red line on top...a long trade and impacts SPX too....if it holds down from here a quick short
Its funny how the 1995 chart and 2016 chart look so similar.....we had a rally a big rally and if we are in that trend, we are just getting started :) look for signs of weakness but yeah if this trend is on, god save them bears.
I did a trend based pitchfan with parallel track channel zones and found we are really at a point where SPX fold on its own pressure or break and enter a zone of the upper purple area where it could stay for a long time that is if it does enter that purple zone. We have been battling the green zone but not left it so we could very well stay
Idea: start with...
We are at at a 38% retracement, there is the 23% above with a huge 2040 resistance above and there is the 50% retracement and a 1940 support below. This is the range to trade. We are looking at at the failure of 38% level for a short. If it holds trade long to 2040 but dont hold your breath to go above that.
Key things to note:
1. Overall impact from the Britain...
Notes on chart - we hit a level today that sets the stage for the "BREXIT" vote.....a push could occur over that line taking on new levels...I will add a daily chart to show the same thing and link it here
The blue band shows a dynamic support that has held.
The two red triangles represent the surge occurring at this level creating a higher low.
The Green line that passes across is the daily support line from the February rally that has now become resistance.
Seeing there is another clutch play going to happen. I would short if the blue band breaches.
Its a quick trade, not a buy and hold....a scalp if you will. Reasoning - the last three squeezes represented by triangles ended up squeezing upwards for a short term to return. I would look at the triangle as to where it is going to cross for a possible short term trade on either side