SPY
My 1st SPY short trade was a success. See link below
SPY is now giving us a great look and excellent short entry
SPY Daily chart analysis
Let’s hope the “Bull” fanboys aren’t getting too excited with the recent green days as they wont last.
SPY’s chart gives us a nice look of some of the stages in the market
1) In May ’20, price entered its continuation of its Uptrend.
A nice move respecting the 50ema. Took price from 300 to a high of 470 in Nov.’21
2) After reaching high of 470 in Nov.’21, price breaks down from 50 ema and starts to move sideways between 470-450 with a false breakout Jan.’22.
By mid-Jan.’22, price breaks below Support area at 450. This now confirms the “sideways” range to be a Distribution Stage.
3) After breaking below Support area at 450 and confirming Distribution Stage, the start of the Downtrend is expected.
Price proceeds to breakdown to 420 area where it finds Support. At this level, price pulls back to the previous 450 area on Apr.’22 turning previous Support into Resistance.
At this pullback turning Support into Resistance, we also have an Over-Bought stochastic. This is the start of the Downtrend and our 1st entry to go Short.
After the start of the Downtrend on Apr.’22, price proceeds to make a series of Lower Highs and Lower Lows.
You also see the Death Cross to confirm the Bearish conditions.
With every Lower High and Lower Low, price establishes Support and Resistance areas as you can see on my chart.
Every time price has made a new Lower Low and has pulled back to a Resistance area and we have an “Over-Bought” Stochastic reading, its our opportunity to enter trade short.
Labeled you can see all the short entries, a,b,c,d. We are currently at d), which is our 4th entry to short.
It never gets old…..Downtrend + pullback to Resistance + “Over-Bought” = Short entry
Entering trade short
Entry: 416.75
Stoploss: 441.15, -5.85%
Target #1: 363.75, +12.72%, 2.17 RR ratio
Target #2: 329.00, 21.06%, 3.6 RR ratio
My 1st SPY short trade was a success. See link below
SPY is now giving us a great look and excellent short entry
SPY Daily chart analysis
Let’s hope the “Bull” fanboys aren’t getting too excited with the recent green days as they wont last.
SPY’s chart gives us a nice look of some of the stages in the market
1) In May ’20, price entered its continuation of its Uptrend.
A nice move respecting the 50ema. Took price from 300 to a high of 470 in Nov.’21
2) After reaching high of 470 in Nov.’21, price breaks down from 50 ema and starts to move sideways between 470-450 with a false breakout Jan.’22.
By mid-Jan.’22, price breaks below Support area at 450. This now confirms the “sideways” range to be a Distribution Stage.
3) After breaking below Support area at 450 and confirming Distribution Stage, the start of the Downtrend is expected.
Price proceeds to breakdown to 420 area where it finds Support. At this level, price pulls back to the previous 450 area on Apr.’22 turning previous Support into Resistance.
At this pullback turning Support into Resistance, we also have an Over-Bought stochastic. This is the start of the Downtrend and our 1st entry to go Short.
After the start of the Downtrend on Apr.’22, price proceeds to make a series of Lower Highs and Lower Lows.
You also see the Death Cross to confirm the Bearish conditions.
With every Lower High and Lower Low, price establishes Support and Resistance areas as you can see on my chart.
Every time price has made a new Lower Low and has pulled back to a Resistance area and we have an “Over-Bought” Stochastic reading, its our opportunity to enter trade short.
Labeled you can see all the short entries, a,b,c,d. We are currently at d), which is our 4th entry to short.
It never gets old…..Downtrend + pullback to Resistance + “Over-Bought” = Short entry
Entering trade short
Entry: 416.75
Stoploss: 441.15, -5.85%
Target #1: 363.75, +12.72%, 2.17 RR ratio
Target #2: 329.00, 21.06%, 3.6 RR ratio
Comment:
And down it goes