Weekly Recap: Last Weekend I postulated that we may have found a resistance line around 163 and are about to see a bounce. It seems I was right, but there are two points we should pay attention to; The first is that this week high did not manage to break last week’s high of 167.3, the second is that 2 of the 4 trading days started with a gap up and went down for the rest of the day. Taking this into account and the fact that SPY still trades below the daily trend change line (which is at 167.57), I would say that this bounce has a very limited life span if not over already. A close below the 163.83 will most probably confirm it. A strong bullish week will of course reshuffle the deck and all bets are off.
On the short term, I see clear signs of weakness but not clear signals yet, so a move in both directions is possible. Personally I lean towards another push up before the end of the bounce, but as I said it can go both ways.
Battle Plan for the 9/9/2013
No signals yet so on the sidelines
* 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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