I'm seeing bullish signs of life in SPY heading in to this week.
The MACD on the chart below show early signs of forming a bottom.
The histogram is exiting bearish territory, while the MACD and signal line are completing a falling wedge.
The RSI also shows that we're wrapping up a period of consolidation, another wedge coming to completion here.
When I add up everything I see, it makes me think we're going to get a run of green candles on the 2H chart.
I picked up some SPY calls at 450. 0DTE SPY calls and VIX puts might play well on Monday.
PT1 isn't too helpful, as it's only a couple of points above where we are now. I think this level hits early Monday morning. Once we get our head above that, I'm likely to use that as a stop-loss.
PT2 at the 20D EMA is a bit of a stretch for Monday, but we have been seeing big days lately. I'm likely to close the position when we reach this level.
PT3 is the bottom of a previous channel. I doubt the next move makes it up this high, but this channel has a lot of respect, I would fully expect a rejection here.
Anyhow, I hope you all enjoy my artwork.
Good luck out there!
The MACD on the chart below show early signs of forming a bottom.
The histogram is exiting bearish territory, while the MACD and signal line are completing a falling wedge.
The RSI also shows that we're wrapping up a period of consolidation, another wedge coming to completion here.
When I add up everything I see, it makes me think we're going to get a run of green candles on the 2H chart.
I picked up some SPY calls at 450. 0DTE SPY calls and VIX puts might play well on Monday.
PT1 isn't too helpful, as it's only a couple of points above where we are now. I think this level hits early Monday morning. Once we get our head above that, I'm likely to use that as a stop-loss.
PT2 at the 20D EMA is a bit of a stretch for Monday, but we have been seeing big days lately. I'm likely to close the position when we reach this level.
PT3 is the bottom of a previous channel. I doubt the next move makes it up this high, but this channel has a lot of respect, I would fully expect a rejection here.
Anyhow, I hope you all enjoy my artwork.
Good luck out there!