Intersection

Looking at the SPY weekly, the gap is nearly filled from last Sept/Oct and now there is an intersection of resistance just overhead with the %50 fibbo, major downtrend line and the near term fibbo fan intersecting near 112.50. Will this be enough to create a near term top or do we break to the %61.8 fibbo level where the weekly 200ma is hovering?

Summer End

Labor Day signals summer end and may determine whether we proceed with a seasonal sell off at the current resistance level or continue to rip after a pullback.

DBL Bottom System

Below is a shot of the custom DBL Bottom system created on TOS.
It uses several features including indicators and price in creating the signals you see.
Let me know your thoughts.

Make or Break....

The S&P emini shown below is at a point where a break in either direction should provide good trading opportunities. A break below 1460 would likely lead to a re-test of the recent lows near 1406. A move up past the last pivot would likely lead us up to the 1560 area. Volatility is high with the wide range bars after the Fed decision on Tuesday. Todays inside bar is generally viewed as bearish but the ES is sitting at MA and is right between the 50% and 38.2% fibbo levels. The next day or two should tells us more.

Happy Trading and God Bless.

Retracement likely...but follow through possible

The Dow and S&P, illustrated below with the YM and ES emini futures indices have both risen up near resistance areas. The Dow has moved up through the declining trendline and is now near both a price level top and the 61.8% fibbo, all pictured below noting the white arrow dawn on the chart.
The S&P kissed the down trendline today and is nearing it's 61.8% fibbo. These resistance points will likely cause a near-term pullback from recent this move up. However, looking at the graphs, you'll notice the three moving averages are close to crossing over which could mean the markets are headed for higher highs. Interestingly, the Nasdaq (not pictured) seems to be lagging a bit behind the other indices.

Happy Trading!

God Bless!

Waiting for next week....

So far, the pull-back today is orderly coming down into support with the graph of the Diamonds (DIA) shown below. Next week will tell us more about whether this is a trend change or failed retracement.

By the way, what do you think of my system illustrated below?

Happy Trading & God Bless!

Why I'm not buying....Yet!

In the graph of the Dow emini below we see that it has retraced passed the 68% fib mark but is moving up towards the 50% fib mark which will likely be a stiffer test. We also see the trendline drawn and is still significantly higher than the current price. The S&P emini is in a similar situation. Given these high resistance areas yet to come, I would not be a longer term buyer just yet. It is likely that we could see some more retracement up here to the resistance points in the short term. One encouraging note, there is positive divergence on the indicators shown. I will be looking for a break of the resistance areas before feeling like we'll have room for more significant upside.