First up is the 195 minute chart.
I put in a down trend line now that we have enough price bars. SPY must break that light blue line before any meaningful rally can happen. Don't get sucked into buying falling knives. Let others go first. Check out the daily chart.
We have a blue bar again so we closed below the 2 standard deviation Bollinger band. Notice the 4/10 low was also a blue bar, but on very high volume. There was a bit of panic into that low. Check out the volume pattern in SPY recently. We had a few big volume bars, but we closed well off the lows on those days. The bulls came in to support the market. That was not a panic sell off situation. However, we failed to make a low and now we closed below those bars trapping longs in the process. I think we are going to need some panic selling before we can make any kind of durable low now. For now, sell rallies, that is what everybody else is doing.
Bob
No comments:
Post a Comment