S&P | Typical low volume retrace?

S&P!

Technically speaking this a bearish move back up.

Lets remember the following 4 rules!

INCREASING PRICE - DECREASING VOLUME (BEARISH)
INCREASING PRICE - INCREASING VOLUME (BULLISH)
DECREASING PRICE - DECREASING VOLUME (BULLISH)
DECREASING PRICE - INCREASING VOLUME (BEARISH)

Why is that?

If a price is moving in one direction and having less interest in that move, the likely hood of a reversal is high. This usually reflects in chart patterns as as rising or falling wedges.

TRADING GATE:
RSI – overbough60/oversold40(daily) CHECK
Retracement pullbacks around the 618 FIBS CHECK
Trading under/above 200MA Daily - CHECK


I did a bit of a check over the individual companies which make up the S&P. Things aren't looking great. We have a few pushing into highs... BUT the majority have started to turned or are nearing high retracement levels.

I'm going to look to short from 2900.

Trade active:

Inclined to think this move will happen sooner then later.

Most majors have earnings reports coming next week. Huge week ahead.

Trade active:

S&P volatility is contracting after that move down. That tells us the move out will be explosive..... Lines up again earning reports, fib levels.

HMM!

Trade active:

Entering my a short here from around the break back below 618.

Trailing my stop