All appeared lost this past week as it early in the week it appeared as though the market were heading for a sell off after breaking out of the recent consolidation.
In times like these, it's important to focus on the bigger picture and view things from a longer term perspective.
The weekly chart on the SPY ...
The VIX remains at elevated levels however numerous downside targets in the form of gaps remain unfilled at 21.97, 17.62, and 16.26. Again if the VXX breaks down and fills some of the gaps below this would certainly be supportive for a broader market rally.
Note how the ATR on the VXX is showing a downtrending ...
This week we saw major fireworks in the Builders and Healthcare sectors (as we'll detail more below) but the overall market indices continued to consolidate in the range highlighted in yellow.
All of the major levels we outlined the past few weeks have held so the following scenario is still in play.
We see 2 ...
This week's price action was topped off by the FOMC announcement on Thursday. As was the case with all FOMC announcements, all eyes were firmly fixed on not just the announcement but to the market's reaction of the announcement.
As mentioned in last week's commentary the 199.88 level acted as resistance and ...
With the shortened trading week, this week's price action could best characterized as a period of consolidation, as the major indices closed near where they opened.
All in all a slightly positive end to the end to the week as the buyers were able to close the week slightly higher.
At this point all of the major ...
A couple of pertinent upside gaps -
Gap @ 33.31
Gap @ 28.62.
However numerous downside targets in the form of gaps remain unfilled, which would be supportive for a broader market rally.
Gap @ 24.71
Gap @ 20.72
Gap @ 17.62
Gap @ 16.26
Update on how the scenario we laid out on the weekend is playing out.
The short term bottom we called has held.
The market pulled back to the downside filling the gap we identified @ 194.68 and now it is on it's way to filling the upside gap at 197.67.
Mid-term target is a rally to fill the gap @ 208.32 and a ...
Epic trading action this week and the adage that "the crowd is usually wrong" was once again demonstrated.
This week's sell-off on Monday hit most of our downside targets we posted last week with the exception of the 2 remaining gaps @ 177.48 and 173.22.
The likely scenario is that we've found a short term bottom ...
This week the SPY broke out of the symmetrical triangle then filled the gap we called out at 201.62 and retraced 100% of the previous swing.
The intermediate bias is now to the downside and there are numerous downside targets -
Gap fill @ 196.16
Fib target @ 192.02
Gap fill @ 190.30
Gap fill @ 186.27
The SPY is squeezing inside of symmetrical triangle on the weekly chart which portends to a decent sized move one way or the other once price action breaks outside the triangle.
Last week we outlined 2 possible scenarios which are still in effect:
There's a higher probability that we break to the upside to hit ...
As stated in the Weekly Perspective - we had an unfilled gap on the VIX at 17.70.
This morning we gapped up then filled that gap.
Now we have a downside gap at 16.84 which would be the next plausible target and we see the market indices rally.
Beautiful breakout after classic gap up and consolidation around the 30 minute opening range.
Entered around the 14.7 area 3 times and unfortunately stopped out due to noise.
In events where luck and randomness play a large role - Focus on the decision making process. #