Thursday, September 17, 2015

Multiple Time Frame Set Up On SPY 9-17-15

All stochastics from 5 minutes up to 60 min have bearish divergence at the current time frame Thursday afternoon.  This is in conjunction with the daily stochastics overbought.

This appears to be a very mature set-up for a top of a counter trend rally since August 24th.  A confirming move in price is not yet apparent, but all the signs are in place.  Given the options scan I posted earlier this week, it seems a November expiration put would be an appropriate play here based on profitable stats over the last couple bear markets.

The structure of the correction also appears to be complete in form and time as of today.  A cross of the 30 minute 8 EMA below the 21 EMA would be a reasonable price confirmation signal to initiate a short trade with a stop above the intervening high.


Pete

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