Weekly Recap: SPY made a new higher high this week only to turn around and have its first red week after 4 consecutive green ones, but I think the bear party may be a little premature, on a weekly chart the week closed just 0.06 points lower than last week, which may indicate that we still have more movement upwards.
Supporting this theory is the 4 hour chart below showing a bounce from the 4 hour trend line, and a reversal pattern that was completed in the last hour of trade on Friday. The bounce and reversal pattern usually indicates new highs.
This goes hand in hand with the long signals I twitted about on Friday, which are on the brink of being triggered (see battle plan below). However, even if we go to new highs keep in mind the short signal on the weekly chart and if it is to materialize than the upward movement is limited in size and we may yet turn around this week.
Battle Plan for the 7/28/2013
60 min interval long above 169.23 on SPY
120 min interval long above 169.56 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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