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PUBLIC: Price is out of the channel

Well, the pink channel finally lost the battle.  Price finally clearly closed BELOW the channel I have been posting about.  Also, did you notice the “color change” on the chart?  FOUR of the last SIX trading days are red candles, and it has been months since that ratio has been seen.  Just one of those subtle differences you notice after looking at charts for a long time.  Overnight futures’ price action has been heavy since last week, and it is weighing on our markets.  It could all change in a moment, but for now, price is flashing a minor yellow light to pay a little closer attention.  A visit to the blue dashed line, the 50-day moving average (still rising), would not be unusual near SPY $254.  Breaking back into the pink channel and closing inside would be a good sign for the bulls.  But for the here and now, the bears have the short term momentum.  If you have some cash, you might have an opportunity to make some purchases over the next few months if we can get a nice 10% correction!

  1. Dr. J
    Dr. J November 15, 2017

    Here we are Wednesday morning in the first 10 minutes of trade and price has indeed dropped even further and taken out the recent lows of 2566 on the S&P500. If you look at a 30 or 60 minute chart, you’ll notice we are building the right side of a very complex head and shoulders pattern where the left shoulder neckline could be interpreted to be 2644 from the 25th of October. We have rallied up to 2397 at the peak. I am expecting price to go visit the vicinity of that left shoulder neckline to put in the right shoulder neckline. Then a minor rally before heading to the expected head and shoulders target of 2480-2500. Will it play out? Not sure. Just wanted my “buy the dip” readers to be aware of the potential short term zigs and zags! Trade well.

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