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I spoke of this before and I'm sure most people wrote it off as some sort of voodoo or something but I'll share another example today.
See that pinbar on the left with the blue arrow under it....the top of that is at 820.4
The low was 811.9.....the difference is 8.5 points......add that difference (8.5) to the top of the pin (820.4) and what do you get.....828.9....guess what the high was at....
That's why yesterday I was saying in the chat it was going to 820+ but couldn't say when til I got some PA but you know what a mess it was.....but as soon as it popped over 820.4 and got retested you get the green light to go long if you couldn't do it any other way.
The short was after I got PA...namely that lovely pinbar at the top. (technically as of this writng the short is still in play...no PA to say get out yet.)
There is some other stuff but that gives you a glimpse......
What a bunch of garbage today.....ADP days suck, I generally sit on the sidelines on this day because it has been goofy for at least the past year or so. I migh tread lightly tomorrow too if I don't see some decent action in the first half hour.
Anyway for those that pay any attention to my ramblings, here we are at 815 again....I figured this might happen.
At this point I'm thinking we need to get past 805 or 828 and hold to get going somewhere...anything in between is probably just up and down and/or chopolla stuff.
In looking at the hourly charts of the S&P and the VIX, it seems likely that there may be a small pop tomorrow morning, if not on the open ahead of ISM Services, before a bigger drop ensues later in the day and perhaps after the ISM Services print or maybe any such potential volatile trading will more to do with ECB messaging.
Specifically, the VIX is still carrying a gap at 16.60 and one that is likely to close before its intraday Double Bottom and Island Reversal and daily Bull Pennant try to spike the VIX higher. However, it is not necessary for the VIX to close that gap to move higher, but it does fit with its history and so it seems likely that the VIX drops down briefly to some level between 15.75 and 16.60 before popping higher on those patterns with there being a strong possibility the Double Bottom transforms into an Ascending Triangle or a Triple Bottom.
Irrespective the major near-term pattern in play above is the Bull Pennant that confirms at 17.38 still for a target of 21 with those other technical aspects suggesting it will not fail by dropping below 13.66 but rather will succeed in taking the VIX higher.
Such a spike higher in the VIX is likely in looking at the S&P’s briefly confirmed daily Bear Pennant and what looks like an intraday Head and Shoulders in the making.
This H&S is the equivalent of the S&P’s small Broadening Top with the real aspect to watch shown by the Bear Pennant that confirms at 1394 for a target of 1359 while it probably fails at 1422. What could cause it to fail is if the Ascending Trend Channel encasing the Bear Pennant turns out to be stronger to take the S&P higher, but it is the chart of the VIX that shows much more of a Bull Pennant than a Descending Trend Channel to support the decline in the S&P.
Levels are the best way to watch this bull and bear battle, however, and those are 15.75 and 17.38 in the VIX and 1394 and 1415 in the S&P.
Overall, though, both the S&P and the VIX appear to support a drop in the risk assets even if it follows a brief pop.
Just a heads up...I've got a few things on my chart saying that 818.1 is a spot to keep an eye on and if it stays above
I think 831.5 is in the cards ....which makes sense since 832 was a spot I wanted to keep an eye on anyway.
This one isn't as pretty as I like to see but something to keep in mind
Edit: I should say that if it goes over 818.1 you should be able to buy it there at a retest which usually happens pretty quick and you don't need much of a stop...maybe 10 ticks....( it's has to hold pretty good or just write it off, actually if it backs up more than 5 ticks you should probably get out) only do that if your comfortable doing that....use your own judgement if it looks good to you....and remember this isn't the best looking setup on this one so if you don't like it there will always be another one.......
I guess I should have said in my last post to look for a short if 818 couldn't be had.....
anyway it's still a level to be watched when we get there.
My whole idea of this thing going back to 850 is getting a little questionable....I'll try and figure out what the heck is going on later along with more spots.....actually maybe I should stick with just the spots
A friendly reminder: looks like the three peaks and a domed house is about complete...except for the final wall down. No? That would be a drop of what?...200 points?!?