Spy - Cyclical bottom , potential long position
US markets had a bad day on the streets and would have had some traders scared, but price found support at critical levels. After a long trend following price chart on Daily, price broke through below the Bollinger bands and in a scary position. We need to watch for price action, and see if it falls back in the bands for further review.
From a cycles perspectives, as seen on the charts, price has come down in the corrective zone, making a potential bottom. This could be a great time for a swing trade, once we are sure a bottom has been made. Once the bottom is made, then we get onto the rising phase of the cycle, where we expect higher prices
What will be interesting is whether price, in this ring phase, is make a higher high, or does it fail at important resistances
Points of observations:
1. Price found support on 124 Day MA and retraced higher.
2. Price found support on 20 Week MA (Should act as a support, if it sustains)
3. Fed Tapering in the news will have an impact
Dow Jones Industrials and Dow Jones Transportation stocks both charts have been more negative than the QQQs and SPYs..
Look out for this space, todays going to be an interesting day!
From a cycles perspectives, as seen on the charts, price has come down in the corrective zone, making a potential bottom. This could be a great time for a swing trade, once we are sure a bottom has been made. Once the bottom is made, then we get onto the rising phase of the cycle, where we expect higher prices
What will be interesting is whether price, in this ring phase, is make a higher high, or does it fail at important resistances
Points of observations:
1. Price found support on 124 Day MA and retraced higher.
2. Price found support on 20 Week MA (Should act as a support, if it sustains)
3. Fed Tapering in the news will have an impact
Dow Jones Industrials and Dow Jones Transportation stocks both charts have been more negative than the QQQs and SPYs..
Look out for this space, todays going to be an interesting day!