SQQQ has had a major sell off. MACD has rolled over in the hourly charts: one, two, three and four looks next. We're sitting on a support level. However, for confirmation in the trade, I'm looking for a breakout of the channel.
Currently, the chart is showing bullish and bearish signs.
1. Positive sloping RSI
2. MACD crossing with a green bar
3. VIX MACD (4 hour) crossed today
1. Main chart sits in a classic bear pennant
2. Sideways action helps the bears move out of an oversold position
I'm going to continue to wait until a see a firm sign before...
Looking like a possible expanding flat (3-3-5). We've completed a wave down (Wave A) and should be wrapping up Wave B on Friday. Though Friday doesn't have to be an up day. Technically we crossed the ATH and have satisfied the three waves up. Next week, we should see Wave C start with the expectation that it will end just past Wave A.
There are several things to...
1. We stopped today right on the Fib 0.786. Looking back to mid-Sept, this has been a resistance area.
2. We created gaps on the way up. Gaps are usually filled but not always.
3. On the Stochastic RSI, we're red hot. The last time we were this hot, back in AUG, we saw a nice bear market for a couple of days.
Sold a chunk of my SPXU at the close yesterday. Why? Take a look at the gap that formed yesterday. Typically gaps are filled. That's what happened on Sept 20th. We gapped down and the gap was filled days later. So for the near term, I'm expecting bullish movement to fill the gap. Beyond that, I'm expecting the bears to take over.
I've been watching this channel for a while as I've been wanting to short the market. There's been a breakout in the channel. Previously two breakouts were head fakes. So another head fake is still in the cards, but I'm trading until it happens.
In the short term, looking for a bounce off the red support line. It has a good history of support.
Still looking at 07 SEPT as a possible change in a major direction. Why? No other reason than two support lines converging. Also, coming off a three-day weekend. Could be completely wrong.
Also, I'm watching the VIX. Looking for the VIX to stay in the $20 range...
Short term, I think this market is bullish. I see it riding on the green support line. Looking ahead to Sept 7th, I have two long-term support lines converging (green and black). Remember, the market is closed on the 6th, so an extra day for the unknown to happen...
My two cents
My chart readings are based on previous events. Take a look at the RSI, in particular my level set to 19 and change. Previous times where this level was reached, the market changed direction soon after.
Also, take a look at McClellan Oscillator. Compare Oct 09, 2008 and today, they are very close in value. The 9th was a Thursday. The 10th, Friday, saw more...
I've been sitting on my hands waiting for a definite sell sign. I've been a firm believer that this rising wedge (blue lines) will materialize. I think we're about to see the selling begin. Support lines are being tested and looking at the volume, you'll see it's starting to move upward.
For the bulls, this could bounce on Monday. We're on the support line. ...
I'm currently holding puts on the market. If the market breaks above 2630, then I'll going to sell half of my puts. Then wait for the selling to occur and then start shorting.
We remain in the rising wedge, so bears still have a play. This Bull market has been persistent.
Back from a mini vacation, so I haven't been analyzing. Definitely a rising wedge. Could see it complete here in a few days. I have started to collect shorts on SPX. You can see the supports below (black, red, and orange). So I plan on selling the shorts at the supports.