Long Term Picture 1Y/D SPY
Today's candle is a doji. Bulls and bears where fighting and nobody is a winner. The first part of the W pattern has been formed. The second part will hopefully follow. The statistics of the W Pattern can be found here. If the W completes, that target for the trade is $431, The W has a height of $20, breakout point would be $411. $411+$20=$431 and we are back at the high from August 16.
Market SQN
Today the Market SQN number is finally pointing back into an up trending direction. At the same time the market volatility is declining.
Big 5 and VIX
For SPY and IWM lower trend line is still intact. Not so much for DIA. The QQQ's start to look more like DIA. EEM is almost back to support.
Many people talk about the market will go even lower. This may be possible. However I don't see this in the charts. The big red candles on SPY were all news driven. Fed speaking and CPI number was a surprise.
Many people talk about the market will go even lower. This may be possible. However I don't see this in the charts. The big red candles on SPY were all news driven. Fed speaking and CPI number was a surprise.
Conclusion
So far we held 390 and today was indecision. To me that means bullish.
Disclosure
I have been beneficially long the shares in SPY, IWM and QQQ. I wrote this article myself and it expresses my own views and opinions. I am not receiving any compensation for this. I have no business relation ship with any company whose stock is mentioned in this article.
I am not an investment advisor or professional. This article is my personal opinion and experience and is not meant to be a recommendation of the purchase or sale of a stock or option. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.
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