Did you like today's price action? Came into today overbought on the MFI 1hour similar to Monday. also similar to Monday was the dip being bought up.
Same action seen on Dow Jones. Notice the similar moves on QQQ yesterday?
These type of moves are pattern formers.
To make double tops, flags and Inverted h&s you will need a period of consolidation where the stock trades in a tight range to form the pattern. In this case its starting to look like the MM'S are creating the double top. Over the next week I expect a tight range trading with 454 being the high and 450 the low until the that right top rounds off some more.
If I'm right the spy will gap open tomorrow on a few positive earning notes then have a red Monday.
No matter how you try and predict this market you still have to react to what's happening.
What I mean by that is , although I feel a double top is playing out I will go long if spy breaks out of RSI divergence. Lose your opinion not your money!
Same action seen on Dow Jones. Notice the similar moves on QQQ yesterday?
These type of moves are pattern formers.
To make double tops, flags and Inverted h&s you will need a period of consolidation where the stock trades in a tight range to form the pattern. In this case its starting to look like the MM'S are creating the double top. Over the next week I expect a tight range trading with 454 being the high and 450 the low until the that right top rounds off some more.
If I'm right the spy will gap open tomorrow on a few positive earning notes then have a red Monday.
No matter how you try and predict this market you still have to react to what's happening.
What I mean by that is , although I feel a double top is playing out I will go long if spy breaks out of RSI divergence. Lose your opinion not your money!
