SPX According to Plan
- The horizontal line at 2700 was only coincidental, and when you go back and read my other post about the importance of that level you'll see why it bounced so quickly out of that price point
- The intended target
- Resolution at lower price points that assets are "coiled"
I did not plan on price dipping just slightly below 2700 before making that long and stretched lower shadow on today's candlestick, but as fate would have it 17 points of a counter-trend rally occurred right after the fact.
The Rally Point
Between 5/25 and 5/31 were the key support points that drove SPX up to 2790 and it has since faded, confirming the series of lower lows for this year, and like most rallies have been shaping up. this one is fully out of gas and momentum would begin to swiftly increase to the downside
Resolution
We believe that teh green zone at 2675 or so (see shaded rectangle) would be one of the best price points to look into getting long again to exploit the imbalance in the equity market; the trend overall favors bounces to the tune of 100-225 points in a short period of time. The nature of this fractal can change faster than we are able to adapt, but we feel like this is the reason why having chart annotations is so powerful. They can provide personal references why I was right or why my thesis was wrong.
Trade well.
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