Getting caught up in the short-term 3/5/10 min charts, that I forgot to step back and look at the daily movement. The parallel trendline in red sloping downwards has kept us within that bound for a good two months now. Notice the two red vertical lines I drew indicating the overbought condition on the stochs, with the short-term indicator crossing over. Both times, the rally up was on decreasing volume. For a similar downside to result now as it happened in early November, I'd like to see the SPY overshoot the upper trendline on volume less than 400 million, and then correct and resume to the lower channel.
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