I stopped counting the number of times SPY has gapped up since the beginning of this rally, and today was just another one of those gaps probably fueled by Bernanke’s speech and BAC results, but despite it all and the repeated attempts it failed to close above the stop loss line leaving the short trade alive.
On the other hand there is a strong resistance around 167.76 on SPY and multiple attempts to break below were rejected, so I guess we can say we have some kind of a range that the market is fighting over, and with the bollinger bands tightening it will not take much longer to find out who where we are heading.
With the new high and all this volatility, the system issued a short signal today for the 120 min interval, see details below in the daily battle plan
Battle Plan for the 7/18/2013
60 min interval Short stop loss above 168.21 on SPY
120 min interval Short Entry below 167.15 on SPY
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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