Weekly Recap: SPY continued its climb this week and although it was a weaker advance than last week SPY still made new all time highs and crossed the upper wedge trendline. All trend lines support the bullish case, and a continuation of the move up is the most likely scenario.
We are on the brink of a decision point (another one sheeeshhh), either SPY turns around in the next several days for at least a minor retrace/consolidation giving the bears some hope that this was just an overshot over the wedge line and this rally is almost over, otherwise another couple of green days and I am pretty sure we can say the bulls will be running the game for the next couple of months and any retrace we shall see (probably to check the broken wedge line) should be bought.
In the short term ,the bulls broke the 60 min trend line on the last hour Friday, so now all trend lines support the bullish scenario again. The possible inverse Head and Shoulders pattern I twitted about during trade hours Friday may very well manifest fully with a target around 177.5. The last hope the bulls have is the negative divergence on the 120 min, so if the 60 min will create one too we may see a correction, otherwise the direction is up
Battle Plan for the 10-28-2013
120 min short signal under 174.74
* 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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