Click on Chart to EnlargeThe chart above is an hourly chart of SPY. I have drawn in a triangle type pattern containing the recent sideways action. Triangles can end complex corrections. I am basically putting this there to show from a charting perspective that bulls have benefit of the doubt as long as prices remain above the apex level of that triangle.
On the flip side, notice the hourly RSI is nearly overbought. Also a daily chart 3 period RSI is overbought as well. In a downtrend, the market will typically not have much upside left by this time. Also note the unfilled gap down at 109.80 on SPY. It looks right now that that gap will be filled soon. I will be watching that gap to see if there is a close above that gap or if it becomes resistance.
I'm going to hold off on anything new here. But my preference is still to look to bet against strength for the time being. Unless/until there is a pullback to a higher low with some short-term oversold readings, I'll treat the trend as down.
No comments:
Post a Comment